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.

    • Related Articles

    • London Stock Exchange (LSE)

      One of the world’s oldest and largest stock exchanges and the principal London exchange for equity and bond trading. It is a UK recognized investment exchange and hosts several markets, including the Main Market, Alternative Investment Market (AIM) ...
    • Toronto Stock Exchange (TSX)

      The Toronto Stock Exchange is an exchange for the securities of senior businesses and is the main equity market in Canada. It is owned and operated by the TMX Group Limited.
    • Trading Account

      This account is the very first step for preparing Profit and Loss Statement and Balance Sheet. Direct sales and direct expenses like wages, octroi which are related to the production or procurement of a product are taken into account while preparing ...
    • Seed Financing Round

      Also sometimes referred to as a friends and family round, an early round of financing for a startup company, typically conducted not long after the company is formed. Startups may raise debt and equity capital in multiple rounds of seed financing ...
    • Call Options

      Call options are financial contracts that give an option buyer the right, but not the obligation, to purchase a stock, bond, commodity or other asset at a specific price, all of which is executed within a specific time-frame. The stock, bond or ...