Anything which is unsold from inventory is CLosing Stock (Finished goods). There is no need to pass seperate closing stock entry. It work as follows:
When production takes palce & goods reciept is done for the same.
Inventory A/c.. Dr (standard price or actual price)
To change in stock
When goods sold (Post Goods Issue done)
Change in stock A/c... Dr (standard price or actual price)
To Inventory A/c
The balance is closing stock.
Same is with Raw Materials.
When Raw Material is recd:
Raw Material A/c... Dr
To GRIR A/c
When Raw material consumed:
Consumption A/c... Dr
To Raw Material A/c
Balance is Raw Material Closing Stock
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