What is the difference between adjusting entries and closing entries?

Adjusting entries are made at the end of the accounting period (but prior to preparing the financial statements) in order for a company's accounting records and financial statements to be up-to-date on the accrual basis of accounting. For example, each day the company incurs wages expense but the payroll involving workers' wages for the last days of the month won't be entered in the accounting records until after the accounting period ends. Similarly, the company uses electricity each day but receives only one bill per month, perhaps on the20th day of the month. The electricity expense for the last10-15 days of the month must get into the accounting records if the financial statements are to show all of the expenses and the amounts owed for the current accounting period. Other adjusting entries involve amounts that the company paid prior to amounts becoming expenses. For examples, the company probably paid its insurance premiums for a six month period prior to the start of the six month period. The company may have deferred the expense by recording the amount in the asset account Prepaid Insurance. During the accounting period some of those premiums expired (were used up) and need to appear as expense in the current accounting period and the asset balance reduced.Closing entries are dated as of the last day of the accounting period, but they are entered into the accounts after the financial statements are prepared. For the most part, closing entries involve the income statement accounts. The closing entries set the balances of all of the revenue accounts and the expense accounts to zero. This means that the revenue and expense accounts will start the new year with nothing in the accounts--allowing the company to easily report the new year revenues and expenses. The net amount of all of the balances from the revenue and expense accounts at the end of the year will end up in retained earnings (for corporations) or owner's equity (for sole proprietorships). Thanks to accounting software, the closing entries are quite effortless.

adjusting are made to correct the account balance of every indidvidual t account while closing entries are made to close the account like expense , revenue , income summary etc

it's clear i think !

It's all in the order they are placed. Adjusting entries occur at the end of an accounting period, before the income statements are prepared, to make adjustments for items that have been incurred but not paid. Such as depreciation, taxes, wages, etc. They can also be used to account for that part of prepaid revenues that have been earned. The closing entries are made after the financial statements are prepared. These close out accounts that accumulate information for only a specific period, such as Revenue, Expenses, and Drawing accounts. Reversing entries are made at the beginning of the next accounting period to reverse the adjusting entries made in the previous. This is done to simplify the recording of transactions in the new accounting period. Not all adjusting entries should be reversed. The following rule should be applied: Except for the first year of operations, reverse all adjusting entries that increase an asset or liability account from a zero balance.

Adjusting entries are recorded to update the accounts' balances while closing entries are made for closing expenses and revenue for the period to determine the performance (Profit or Loss) of the business.

Income statement serves the same purpose for which closing entries are passed.

Adjusting entries can be made any time to adjust GL accounts and any account offsetting to an other GL account / Revenue & Expense account ie Depreciation, Prepaids, etc

 

Closing entries are specific to close a period. It is normal to make Adjusting entries before making Closing entry. 

Closing entries are made to close the temporary accounts (revenue and expense accounts) at the end of the year while adjusting entries are made before the end of the period or the year to include accruals and to handle advances and unearned revenues.

Adjusting entries occur at the end of an accounting period, before the income statements are prepared, to make adjustments for items that have been incurred but not paid. While as closing entries are made after the financial statements are prepared. These close out accounts that accumulate information for only a specific period, 

Adjusting entries are made to recognize income/expenses to the period to which it belong. Closing entries are made to close the financial period.

The entries that are made at the end of accounting period are known as adjusting entries. Onecan look out for the accounting records and financial statements just based on the accrual basisof accounting. The company uses several records of the financial statements that show thecurrent expenses according to the accounting period. One must see to that the accounting periodsand the insurance premiums are paid in a six month period of time .Some of the premiums areexpired and one need to see to that the current accounting period has an asset balance reduced.These are general entries that are recorded in the ledger. The entries are recorded before theclosing of the books. One may find it tricky to handle the adjusting entries. It mainly dependson the judgment call of the accountant. The accruals and the expenses are occurred at the end ofthe accounting period. There are some of the incomes and expenses that are occurred within aspecified accounting period. The accrual interest is earned in the bank account. The services ofthe paychecks reflect the wages of this month.

Adjusting entries are made at the end of the accounting period but prior to preparing the financial statements in order for a company's accounting records and financial statements to be up-to-date on the accrual basis of accounting.

Closing entries are dated as of the last day of the accounting period, but they are entered into the accounts after the financial statements are prepared.