Discuss and Analysis on Closing Entries

Basic purpose of this article is to Discuss and Analysis on Closing Entries. To update the total amount in the owner’s cash account, accountants close earnings, expense, and drawing accounts at the end of each fiscal year or, occasionally, at the end of each accounting period of time. For this reason, these kind of accounts are called temporary or perhaps nominal accounts. Assets, financial obligations, and the owner’s cash account, in contrast, are called permanent or perhaps real accounts because their ending balance a single accounting period is constantly the starting balance from the subsequent accounting period.