Opening stock is shown inChoose one optionTrading A/cProfit and Loss A/cBalance SheetProfit and Loss Adjustment A/c

Understanding the Options

The question inquires about where the opening stock is recorded in financial statements.

1. Trading A/c: This account is primarily used to determine the gross profit or loss of a business. Opening stock is typically included here as it contributes to the cost of goods sold.

2. Profit and Loss A/c: This account reflects the net profit or loss of a business after deducting all expenses from income. Opening stock is not shown directly here.

3. Balance Sheet: This statement shows the financial position of a business at a specific time, including assets, liabilities, and equity. While opening stock is an asset, it is usually presented as part of the closing stock figure in the balance sheet rather than the opening stock as a separate line item.

4. Profit and Loss Adjustment A/c: This account is generally used for adjustments and is not where opening stock is recorded.

Conclusion

Opening stock is recorded in the Trading A/c as part of the calculation of goods available for sale, which helps determine the cost of goods sold and thus the gross profit or loss for the period. Therefore, the correct answer is Trading A/c.