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How, when and why do you prepare closing entries?

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Question ajoutée par Yazan Ahmad , programmer , wysada
Date de publication: 2017/01/04
Ahmed mohsen
par Ahmed mohsen , Senior Accountant , Main Poly Clinic

how?

Four Steps in Preparing Closing Entries
  1. Close all income accounts to Income Summary
  2. Close all expense accounts to Income Summary
  3. Close Income Summary to the appropriate capital account
  4. Close withdrawals to the capital account/s (this step is for sole proprietorship and partnership only)

Ashraf E. Mahmoud (PhD)
par Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

Closing Entries are prepared for income and expenses journal accounts at the end of financial period to be able to post its outstanding balance to the "Income Statement".

Soliman Abd  ALmalak Gendy
par Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

We prepare them for temporary accounts *The closing entries require that a debit be entered into each of the temporary accounts having a credit balance, also the same for a credit.

Mohammed Omar Khan
par Mohammed Omar Khan , Chief Financial Officer , Mr. Raut P.G

Closing entries are the journal entries made at the end of the accounting period to ascertain the exact expenses / incomes.

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