Closing Stock
Definition
The value of unsold inventory at the end of an accounting period. It reduces the cost of goods sold for the period and is carried forward as the opening stock of the next.
Related Terms in Core Accounting
Opening Stock
The value of inventory a business holds at the start of an accounting period, carried over from the prior period's closing stock. It is added into the cost of goods sold calculation.
Sales Return
Goods returned by a customer after a sale, reducing recorded revenue and, where tax applies, adjusting the tax charged — often through a credit note. Also called returns inward.
Purchase Return
Goods a business returns to a supplier after purchase, reducing recorded purchases and the amount owed — often via a debit note. Also called returns outward.
Capital Work in Progress (CWIP)
Spending on fixed assets still under construction or not yet ready for use. It sits on the balance sheet as CWIP and is not depreciated until the asset is completed and put into service.
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