CLOSING ENTRIES

A closing entry are made at the end of accounting period.the closing entry are used transfer data in the temporary accounts to the permanent balance sheet or incom statement accounts.the purpose of closing entry is to bring the temporary journal account balances zero forthe next accountig period which aids in keeping the accounts reconciled.


FORE TYPES OF CLOSING ENTIES;

1; To close revenue accounts;
                    
   revenue account    
                     incom summary account
    close revenu account to incom summary account by debiting revenu account and crediting incom summary account

2;To close expenses accounts

incom summary account
                   expenses accont
close expenses account to incom summary account by debiting incom summary account and creditng expenses account  all expenses are idvidually closed.

3;To close income summary account

  income summary account
                  retained earning account
close income summary account to retained earning account if retained earning debit in case of loss and if retained earnind credit in case of profit

4;To close divident account;

retained earning account
                 divident account
closing divident to retained earning account by debiting retained earning account and crediting divident account and divident is contra retained earning