CLOSING

JOURNAL

BY :
M I TA R O S I TA
XII ACCOUNTING 2
CLOSING JOURNAL MEANING

• Closing journal is one part of the financial

statements that will be prepared at the end
of the accounting period.
 PURPOSE AND FUNCTIONS OF MAKING
CLOSING JOURNAL

• The main purpose of making closing entries is to close all

accounts that are in the provisional account, so that their
balances are zero.

• The function of the next closing entry is to separate the

income and expense accounts.
 EXAMPLE OF CLOSING JOURNAL CASE
• 1. Closing entries for revenue accounts
Account Name Debit Credit
Service income IDR 10,000,000
Profit and loss overview IDR 10,000,000

• 2. Closing entries for expense accounts

Account Name Debit Credit
Summary of Profit/Loss IDR 7,500,000
Equipment expense IDR 1,000,000
Machine depreciation IDR 2,400,000
expense
Salary expense IDR 3,600,000
Interest expense IDR 500,000
• Closing entries for income summary
Account Name Debit Credit
Summary of Profit/Loss IDR 15,000,000
Capital IDR 15,000,000

• Conclusion With closing entries, all accounts will be returned to

zero so they are ready to start recording and reporting your trading
company's financial statements for the following year.