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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Trial Balance
Closing inventory is not part of trial balance. So if an error is made in double entry of closing inventory so how would it be corrected as neither suspense account can be opened for it?
The trial balance is normally produced before the year end adjustments, which is why the closing inventory does not appear.
However if there is an error in the entry for the closing inventory (i.e. the debit not equalling the credit) then the SOFP would not balance and a suspense account would therefore be created at that stage.