CLOSING ENTRY

CLOSING ENTRY
Closing Entry Is a journal created
at the end of a period, to close or
nullify nominal accounts
FUNCTION CLOSING ENTRY
Calculating The Amount Of
Income/Loss Of Income and Load
Accounts
Remove Or Offer Temporary Account
To Capital Account For Registering To
the next period.
Calculating The End Capital Period
ACCOUNT ACCOUNTS THAT NEED TO BE CLOSED

a. Income
b. Expenses
c. Prive
d. Business profit / loss
How to compose a closing Entry journal

A. Close the "Revenue" account to the

“Income Summary" Rec
Transferring accounts - income
accounts for the balance (found in the
working paper of the credit side
profit / loss column) to the profit / loss
account
Revenue (D) Rp. ...
Income (D) Rp. ... –
-
Overview of profit / loss (K) - Rp. ...
Income Summary (K) -
Rp.(For
... the balance of each income)
(For the balance of each income)
B. Close account "Expense" to
account
" Income Summary"
Move account of the expense in the
amount of each balance
(contained in the working paper on the
Income Summary (D) Rp. xx
debit / profit side loss column) to the
-
profit / loss account.
Capital ... (K) -
Rp. xx
Capital ... (K) -
Rp. xx
Capital ... (K) -
Rp. xx
 Close the “Income Summary"
account to account "capital"
Move profit / loss to capital
account / equity If profit.
• If Profit :
Income Summary (D) Rp. ...
-
Capital (K) -
Rp. ...

• If you lose :
Capital (D) Rp. ... -
Income Summary (K) -
 Close the "Prive" account to
the account "Capital"
Move the prive account as big as the
balance (found on the work sheet of the
balance sheet end of the debit) to the
Capital
capital...account .(D) Rp. ... -
Prive ... (K) -
Rp. ...
(Amounting to prive balance)
For company individual

Profit not divided (D) Rp. ...

-
Dividend (K) - Rp.
Example: Based on PD Asih Jaya's paperwork, Semarang as
of December 31, 2005 (Table 2.4) a closing journal can be
prepared as follows.
CLOSING JOURNAL

DATE INFORMATION DEBIT KREDIT

2005
Des 31 Sales Rp 95.000.000,00
Sales Purchase Rp 3.500.000,00
Interset Revenue Rp 600.000,00
Income Summary Rp 99.100.000,00
Des 31 Income Summary Rp 86.450.000,00
Sales Return Rp 1.500.000,00
Purchase Rp 66.000.000,00
Freight In Rp 3.000.000,00
Sale Salaries Expense Rp 2.500.000,00
Advertising Expense Rp 1.500.000,00
Store Supplies Expense Rp 1.000.000,00
Freight Out Rp 500.000,00
Ren Store Expense Rp 500.000,00
Office Salaries Expense Rp 1.000.000,00
Office Supplies Expense Rp 300.000,00
Daily General Load Rp 700.000,00
Income Tax Rp 4.500.000,00
Depreciation Of Shop Equipment Rp 3.000.000,00
Depreciation Of Office Equipment Rp 450.000,00
Des 31 Income Summary Rp 14.150.000,00
Equity Mr.Asih Suryo Rp 14.150.000,00
Des 31 Equity Mr.Asih Suryo Rp 2.000.000,00
Prive Mr.Asih Suryo Rp 2.000.000,00
QUANTITY = Rp 201.700.000,00 Rp 201.700.000,00
THANK YOU