which are the final entries while closing of books and account at the end of f

which are the final entries while closing of books and
account at the end of financial year ?

Question Posted / hussain_kp2007

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which are the final entries while closing of books and account at the end of financial year ?..

Answer / dattatraya

while colsing the books of accounts at the end of the
financial year normally following accounting entries need
to post.

1. Transfering personal accounts balance to the control
account like individual debtors accounts balance to debtors
controls accounts. In the Computer system this entry need
not to be posted because system automatically transfer
clearing accounts GL balance to control account.

2. Espenses accounts balance to the profit and Loss
accounts.

3.Income accounts (other than Sales) balance to the Profit
and Loss accounts.

4. Notional entries :
a. Depriciation charges on Assets
b. Intrest on Loan
c. Rent paid (while primises is owned by the proprietor)
d. Provision for bad and doubtful debts accounts.
e. Bad debts (when we come to know at the end of the year
some provision made for doubtful dets are finaly
irrecoverable.)