Closing entries and post closing trial balance

pready · Oct 15, 2008, 02:41 PM

You need to close the Owner's Drawing Account, the Revenue aoounts and the Expense Accounts.

The difference between the Revenues and expenses is known as retained earnings and is a part of the owner's equity.

betty23 · Mar 29, 2009, 08:06 PM

Which of the following accounts woul not appear in th epos-closing trial balance?

pready · Mar 30, 2009, 10:10 AM

Only your balance sheet accounts will appear in a post-closing trial balance because they are permenant accounts.

rammohan1010 · Apr 9, 2009, 01:22 AM

How to close the accounts in tally 9

pready · Apr 9, 2009, 12:05 PM

First you close your revenue, so you do the following journal entry:
Debit your Revenue Accounts for their amounts
Credit Income Summary Account for the amount of the debits

Next you will close out your Expense Accounts, by doing the following journal entry:
Debit Income Summary Account for the amount of the credits
Credit your Expense accounts for their individual amounts

Finally you clos out your Income summary account to the Retained Eranings Account, by the following journal entry:
Debit or Credit your Retained Earnings Account for the amount
Credit or Debit the Income summary Account for the difference in the Income summary Account account to zero balance the account.

To close your drawing account you will Debit the Owners Equity account for the amount in the drawing account and you will Credit the Drawing account for the amount in the account.

Closing entries and post closing trial balance

Add your answer here.

Check out some similar questions!