opening stock is an asset definitely. And it is shown as a debit because when stock is bought, cash is paid (credit entry in cash ledger) and purchases are debited. Therefore, all the purchases are debited. Since opening stock is also purchases (though unsold), it will be treated as a debit entry.
This was a rudimentary explanation but i hope u mite have understood.
Last edited by Aarwaa; Sunday, February 24, 2008 at 02:10 AM.
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