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Why inventory asset shows in debit side of balance sheet and we cannot see opening stock in balance sheet. Kindly update break up included in cost of goods sold trial balance

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Why inventory asset shows in debit side of balance sheet and we cannot see opening stock in balance sheet. Kindly update break up included in cost of goods sold trial balance

 
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ProAdvisor

Re: Why inventory asset shows in debit side of balance sheet and we cannot see opening stock in balance sheet. Kindly update break up included in cost of goods sold trial balance

Inventory Asset should be listed with a Debit balance on the Balance Sheet.  Upon a sale of Inventory, Inventory should be Credited (reducing the Inventory Asset balance) and COGS should be Debited (increasing the COGS balance). 

As for the Opening Stock Balance, I’m not sure why that wouldn’t be on the Balance Sheet under Equity…you’d probably have to share more info in order to figure out what’s happening in your QBO file. 

Hope this helps!

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