Page 64 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 4

Closing off ledger accounts

3.1 Introduction

At the year-end, the ledger accounts must be closed off in order to:

 transfer income and expense ledger account balances to the statement of profit
or loss

and

 carry down ledger account balances relating to assets, liabilities and capital for
the start of the next accounting period. These balances will also be used to
prepare the statement of financial position.

Preparation of financial statements will be considered in more detail in subsequent
chapters.

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