Closing stock may be raw materials or finished goods or work-in-progess.

Adjustment entry in the book of..

Closing stock a/c…. Dr

To trading a/c

(Being closing stock adjusted)

 

In the trading account closing account is credited and for the balance sheet it is recorded in Assets site

If consumable goods others than finished goods or supplies product remains with company then it is shown in balance sheet too.

Adjustment

Closing stock of unused expenses/supplies a/c………Dr

To Concerned expenses/supplies a/c

(Being closing stock adjusted)

 

Treatment in the final account in Debit side

To Related expenses a/c

Less: Unused stock a/c

 

Treatment in the balance sheet in the assets column

Current Assets, loan and Advance

Add: Unused stock