The difference between opening and closing stock should be allowed as an expense where the opening stock exceeds the closing stock.
Trading account for year ending 31.12.928
Stock at the Sales during
beginning 2000 period 70000
Cost of purchases Stock in hand at end
during period 57000 of period 1800
Total 59000 Total 71800
Difference between opening and closing stock
2000 - 1800 = 200
But where the closing stock exceeds the opening stock, the difference should be added to the gross profit figure.
