Since all the above items are credit balances in the
trial balance, we need to transfer them to the credit side of the Trading A/c.
Hence, we credit the Trading A/c and debit all these accounts thereby closing
these accounts and transferring the balances to the Trading A/c.
Sales A/c Dr.
xxx
Purchase Returns A/c
Dr. xxx
Closing Stock A/c
Dr. xxx
To Trading A/c
xxx
(Being transfer of sales, purchase returns and closing
stock to the Trading A/c)
