CLOSING ENTRIES

Ahmad Rizki, S.pd,M.si

 ALFI SYAHFITRI
208220040

CHYNTIA WINATA
GROUP 9 LUIS 208220070

DINA SURYA NINGSIH

208220008
 DEFINITION

PURPOSE

FUNCTION

STEPS OR HOW TO MAKE A CLOSING ENTRIES

TRIAL BALANCE AFTER CLOSING

 DEFINITION

Closing Entries is a form of journal that is made at the end of each accounting
period with the aim of being able to zero out nominal estimates (revenues,
expenses, fees) and also transfer net income or net loss to capital.
 PURPOSE

The main purpose of closing entries is to close all accounts that are in
the provisional account, so that thier balance are zero. This is done so
that the balance in the capital account shows the actual condition at the
end of the priode.

Accounts that require closing entries

- Income
- Load
- Summary profit/loss balance
- prive
 FUNCTION

- Close all accounts so that the balance becomes 0.

- Shows the balance of the capital account that corresponds to the
end of the period.
- Separating expense and income accound transactions from the
previous period’s balance.
- Prepenting financial information consisting of asset accounts, debt
and also the actual capital of a company after closing the books.
 HOW TO MAKE A JOURNAL ENTRIES

a. The income account in the income statement is

recorded as a debit and credits the profit/loss
effort with the amount in the revenue account.
b. The cost account is credited with the respective
amount in the income statement and debited the
income statement for the total cost.
c. Prive estimates with the amount contained in
the balance sheets column in the credit and debit
capital account with the same amount.

d. If company earns a profit, the journal

made in the amount of profit with an
estimated summary of profit and loss
debited and credited the capital account
with the same amount. And vice versa if the
company suffers a loss.
STEPS TO PREPARE JOURNAL ENTRIES

1. Close the entire INCOME

account with the“ profit/loss
summary”.
- Income on DEBIT
- Summary of profit/loss on
CREDIT
2. Closing the entire EXPENSES
account with the “profit/loss
summary” .
- Summary of profit/loss on
DEBIT
- load on CREDIT
3. Closing the PROFIT/LOSS earned
by the company with the “capital”.
If PROFIT : - Summary profit/loss on
DEBET
- Capital on CREDIT
4. Closing PRIVE account with
counter account “capital”.
- Capital in DEBET
- Prive on CREDIT
example
 TRIAL BALANCE AFTER CLOSING

The closing trial balance is the balance sheet report that is prepared after the
closing entries. The goal is to ensure that the total balance in the general ledger
is balanced or in accordance with the balance.

How to make a closing trial balance

a. Adding up the colomns,profit/loss, balance, sheet and closing entries, placing them on the
balance sheet after closing.
b. if the number is only one, there is no match. Then just write it down (if it is in debit, put it in
debit,and vice versa).
c. if there is amatch and in the dame place ( debit by debit, vice versa) than the numbers are
added up.
d. if the number is on the debit
and on the credit, then find
the difference in the number
or subtract it.
e. Then add up all the numbers in
the numbers in the debet and
credit colomns, debit and credit
results must be the same.
f. Then sorted by liquidity and
acount number