Introduction:
The closing stock is the value of unsold goods or products that a company holds at the end of an accounting period. It is an important part of the trial balance and reflects the value of inventory that a company has on hand.

Closing Stock in Trial Balance:
The closing stock is always shown in the trial balance as an asset. As an asset, it has a debit balance. Therefore, the closing stock account is always shown on the debit side of the trial balance.

Reason for Debit Balance:
The reason why the closing stock account has a debit balance is that it represents the value of the inventory that the company has on hand. This inventory is an asset to the company as it can be sold to customers for a profit. Therefore, the closing stock is treated as an asset and has a debit balance.

Impact on Financial Statements:
The value of the closing stock is used to determine the cost of goods sold (COGS) for the accounting period. The COGS is then used to calculate the gross profit of the company. The closing stock also affects the balance sheet as it is shown as an asset. A higher value of closing stock means a higher value of inventory and, therefore, a higher value of assets.

Conclusion:
In conclusion, the closing stock is always shown on the debit side of the trial balance as it is an asset. As an asset, it has a debit balance, and its value is used to calculate the COGS and the gross profit of the company. The closing stock also affects the balance sheet by increasing the value of assets.