Closing Inventory
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MS: Inventori Akhir · EN: Closing Inventory · ZH: 期末存货
Meaning
Closing inventory is the value of unsold trading goods at the end of the accounting period, valued at the lower of cost or net realisable value. It is obtained through stocktaking and does not appear in the trial balance. Its value is deducted in the cost of goods sold and shown as a current asset.
Example
On 31 December, Manis Cake Shop performs a stocktake and finds closing inventory worth RM3,000. This figure is deducted in the cost of goods sold in the Income Statement and recorded as a current asset in the Statement of Financial Position.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4