closing entries

                Closing entries

it is also called journal entries. they are made at the end of the accounting period. Temporary accounts activities are transferred at the end of the accounting period.

We can say that a temporary account is an income statement that are used to accounting tracking during the accounting period. For example the balance of revenue is 12million. It will also transfer in the permanent account.

A permanent account is also known as a balance sheet. In the permanent account shows at the last end of the accounting period.

 There are three entries of closing entries

• ·         Income account
• ·         Expense account
• ·        Retained earning

                        ALL REVENUE AND GAIN ACCOUNT

                          

                          Closing entries

Date	Description	Debit	credit
26-03-18	Revenue    Income summary account	10,0000	10,0000

                                   ALL EXPENSE AND LOSS ACCOUNT

                             

                                  Closing entries

Date	Description	Debit	credit
26-03-18	Income summary account            Utilities expense                 Rent expense                Cost of good sold                Supplies expense                Salary expense	10,0000	50,000 50,000 800,000 50,000 50,000

                                Dividend or withdrawal account

                                   Closing entries

Date	Description	Debit	credit
26-03-18	Retained earning              dividend    I	10,0000	10,0000

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