Books of Account and Statements for Opening Stock in Financial Accounting

In Manufacturing and Trading Businesses,purchases/inwards and sales/outwards of Raw Materials and Finished Products/Trading Goods are very common.

In this connection,after purchase and sale of goods,when some goods are unsold as on the last day of an Accounting period, that goods are treated/termed as Closing Stock for the Current Year and Opening Stock for the immediate next Accounting Period/year.

Like that if you want to know the day wise Opening Stock and Closing Stock position,Closing Stock as on a date will be the Opening Stock for the Next day/date.

Related Books of Account/Statements for Opening Stock in a Trading Business.

  • Stock Register/Stock Book - Details of Opening Stock 

  • Trial Balance - Debit Side

  • Trading Account - Debit Side

Records/Statements related to Opening Stock

Meaning of Opening Stock with example.

Opening stocks are the quantity and value of Raw Materials/Finished Products/Trading Goods available on the 1st day of an Accounting Period.

Let's discuss,how we have to maintain the records of Stock and use the recorded data  in different Statements/Accounts of Final Account.

For a better understanding,consider for the stock availability of  two(2) Accounting period/years.

In the Books of M/s.RS Food Products

For the Financial Year 2019-20(Accounting period from date 01/04/2019 to 31/03/2020)

Purchased 500 nos. of Mustard Oil 1ltr packet @ ₹120/- per unit. excluding GST@5%.

Sold 475 nos. of Mustard Oil 1ltr packet @ ₹135/- per unit. excluding GST@5%.

On date 01/04/2019 there are no stocks available.

For the above transactions,Opening Stock Quantity and Value of Mustard Oil 1ltr packet on date 01/04/2019 is nil/zero(0).

Closing Stock of Mustard Oil 1ltr packet as on date 31/03/2020

Quantity = 500 nos. - 475 nos. = 25 nos.

Value = ₹60000 - ₹57000(cost price of goods sold i.e 475 x ₹120/-) = ₹3000(25 nos.@₹120/- per unit)

Closing Stock as on date 31/03/2020 will be the Opening Stock for immediately next Accounting period/year i.e for F.Y - 2020-21.

Closing Stock
For the Financial Year 2020-21(Accounting period from date 01/04/2020 to 31/03/2021)

Opening Stocks as on date 01/04/2020 are the Quantity and Value same as

Closing Stock of Mustard Oil 1ltr packet as on date 31/03/2020

i.e Opening Stock as on date 01/04/2020 should be taken

Quantity = 25 nos.(500 nos. - 475 nos.)

Value = ₹3000(25 nos.@₹120/- per unit)

Openign Stock
Place of Opening Stock in Trial Balance

Opening Stock amounts are taken in Debit side of Trial Balance.

Given below is a format and procedure,how Opening Stocks are mentioned/shown in a Trial Balance.

Opening Stock in Trial Balance of a new business/nil stock

Opening Stock in Trial Balance having Stock Value
Journal Entry for transferring Opening Stock Amount to Trading Account

Journal Entry for transferring Opening Stock Amount to Trading Account
Place of Opening Stock in Trading Account 

Opening Stock amounts are taken/mentioned at the top of Debit side in a Trading Account.

Given below is a format and procedure,how Opening Stocks are mentioned/shown in a Trading Account.

Opening Stock in Trading Account of a new business/nil stock

Opening Stock in Trading Account having Stock Value
Location: Cuttack, Odisha, India

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