closing entries

Ø Closing entries:-
   

Ø Introduction

Ø Definition

Ø Revenues, Expenses,  Dividends, Income summary

Introduction:-
                    Closing entries are normally done to close the entries or temporary accounts of the journal, CLOSING ENTRY is a journal entry at the end of a period to transfer the net effect of revenue and expense items from the income statement to owners equity..
Definition:-
                         “A closing entry is made to the general ledger at the conclusion of an accounting period and is used to transfer the balance from a temporary account to a corresponding permanent account.”

 Revenues, Expenses  Etc :-                

Ø  Closing entries are based on the balances of accounts in the adjusted trial balance.
                   Temporary accounts include:
            1. Revenues
            2. Expenses
            3. Dividends
            4. Income Summary …