Stock

Goods obtained for resale or manufactured for sale that are yet unsold on any particular date is known as stock.

Opening Stock: Value of stock at the beginning of an accounting period.
Closing Stock: Value of stock at the end of an accounting period.

Let’s say you have 100 pens at the beginning of an accounting year. Now, you sell 50 of them to your customers. Again, you purchase another 20 from your vendor. So the total closing stock that you’ll have is (100-50+20) i.e. 70 pens.


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