closing entries definition

closing entries

Final bookkeeping entries made at the end of an accounting period to reduce all nominal (temporary) accounts to zero. Balances of these accounts are transferred to the income summary account, and drawings are transferred to the owners' capital account.

closing entries is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

closing entries appears in the definitions of the following terms: post closing trial balance, trial balance and nominal account

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