Page 35 - IC26 LIFE INSURANCE FINANCE

Closing Entries

Sl. No. For Entry
1 Opening Stock Trading A/c Dr.
To Stock A/c
2 Purchases Returns Purchase Returns A/c Dr.
To purchases A/c
3 Purchases Trading A/c Dr.
To Purchases A/c
4 Sales Sales A/c Dr.
To Trading A/c
5 Sales Returns Sales A/c Dr.
To Sales Returns
6 Expenses Trading A/c Dr.
To Expenses A/c
7 Closing Stock Stock A/c
To Trading A/c Dr.

Profit and Loss A/c for the year ending

Particulars Amount Particulars Amount
To gross loss transferred from trading By gross profit transferred
A/c (if any) from trading A/c
To discount allowed By Discount Received
To Bad debts By Interest received
To Salaries By other non-operating
income
To other Administrative Expenses By net loss (if any)
To selling and distribution expenses
To net profit

1. For Expenses Profit and loss account A/c Dr.

To Salaries A/c

To Rent A/c

To Interest A/c

Closing Entries To other Expenses A/c

2. For Incomes or Discount received A/c Dr.

gains
Bad Debts Recovered A/c Dr.

To other Expenses A/c Dr.

To Profit & Loss A/c

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