SELECT * FROM question_mgmt as q WHERE id=4768 AND status=1 SELECT id,question_no,question,chapter FROM question_mgmt as q WHERE courseId=2 AND subId=11 AND chapterId=204 and ex_no='2' AND status=1 ORDER BY CAST(question_no AS UNSIGNED)

Question:

What are closing entries? Give four examples of closing entries.

Answer:

The preparation of Trading and Profit and Loss account requires that the balances of accounts of all concerned items are transferred to it for its compilation.

For transferring the balance of all the ledger accounts to the concerned head is done through closing entries. Here are some examples of closing entries.

(i) Opening stock account, Purchase account, Wages account, Carriage inwards account and direct expenses account are closed by transferring to the debit side of the Trading and Profit and Loss account. This is done by recording the following entry:

Trading A/c                       Dr.
To Opening Stock A/c
To Purchase A/c
To Wages A/c
To Carriage Inwards A/c
To All Other Direct Expenses A/c

(ii) The Purchase return or Return outwards account are closed by transferring its balance to the Purchase account. The following entry is recorded for this purpose:

Purchase Return A/c         Dr.
To Purchase A/c

(iii) Similarly, the sales return or Return inwards account is closed by transferring its balance to the Sales account is

Sales A/c                          Dr.
To Sales Return A/c

(iv) The Sales account is closed by transferring its balance to the credit side of the Trading and Profit and Loss account by recording the following entry.

Sales A/c                          Dr.
To Trading A/c


< Previous Question

Next Question >

SELECT ex_no,question,question_no,id,chapter FROM question_mgmt as q WHERE courseId='2' AND subId='11' AND ex_no!=0 AND status=1 and id!=4768 ORDER BY views desc, last_viewed_on desc limit 0,10

  • Popular questions of class 11 Accountancy

SELECT ex_no,question,question_no,id,chapter FROM question_mgmt as q WHERE courseId='2' AND subId='11' AND ex_no!=0 AND status=1 and id!=4768 ORDER BY last_viewed_on desc limit 0,10

  • Recently Viewed Questions of Class 11 Accountancy

Comments

  • Answered by Ekta Mehta
  • 4 months ago

Taking Screenshots on your Samsung Galaxy M31s is very easy and quick.

  • Answered by Ekta Mehta
  • 4 months ago

Taking Screenshots on your Samsung Galaxy M31s is very easy and quick.

  • Answered by Ekta Mehta
  • 4 months ago

Taking Screenshots on your Samsung Galaxy M31s is very easy and quick.

Comment(s) on this Question


Important links

Quick Links

Resources

Support