3.7 Post trial balance nominal ledger accounts
In Activity 22, the trial balance of Michaela Enterprises as at 31/12/20X7 did not include the effect of the closing stock on the nominal ledger accounts. As shown in the answer to Activity 22, once the closing stock is known then the profit or loss for the period can be determined and the relevant ledger accounts can be finalised. The following activity should remind you how to complete the account for closing stock in the nominal ledger. Activity 23 will also show how the P&L account in the nominal ledger is ‘closed off ’ to the capital account at the end of the period.
Insert the missing entries of closing stock of £200 and profit for the period of £953 in the stock, P&L and capital accounts for Michaela Enterprises for the year ended 31 December 20X7.