Question

closing entries

Answer 1

These are the journal entries for closing all temporary accounts to permanent accounts at the end of a period.

At the end of a period the following closing entries are made for income statement:

Suppose the closing date is 31/12/2018.

Journal

Date	Account titles & explanations	Ref.	Debit	Credit
31/12/2018	Sales Revenue		***
	Service revenue		***
	Income summary			***
	To record closing of revenues.
31/12/2018	Income summary		***
	Cost of goods sold			***
	Salary expense			***
	Depreciation expense			***
	To record closing of all expenses.
31/12/2018	Income summary		***
	Retained earnings			***
	To record closing of income summary (either net income or loss) through retained earnings.