Stock Closing Balance Formula

Stock Closing Balance Formula

Stock or inventory closing balance can be calculated by the following formula.

Closing balance = Opening Stock + Purchases – Sales

Example

Opening Balance Inventory = 20,000

Purchases during the Period = 70,000

Sales made during the Period = 40,000

What would be Closing Balance?

Solution

Closing balance = Opening Stock + Purchases – Sales

=20,000+70,000-40,000

=50,000 (Closing Balance)