Prepare the general journal entry (without explanation) needed to close Net Income or Net Loss for the year end. Use compound entries where required. If no entry is required then write "No Entry Required."

Answers

Answer 1

Answer:

Closing entry for closing net profit / net loss for the year ended

Explanation:

In case of net profit, for the year ended closed -

Profit & Loss a/c .. dr

to Capital ac

{Reason - As profit has credit balance, so nullifying by debiting it. And, profit increases capital, so capital a/c is credited}

In case of net loss, for the year ended closed -

Capital a/c .. dr

to Profit & Loss ac

{Reason - As loss has debit balance, so nullifying by crediting it. And, loss decreases capital, so capital a/c is debited}


Related Questions

What types of insurance is David likely to get through his employer?

David has just joined a new company. His employer offers a number of different insurance policies as one of its employee benefits. For example, his employer’s (Blank)
insurance covers prescription drugs and immunizations. David will also be receiving (blank) insurance at no cost from his employer.
1. casualty, health, life
2. automobile, disability, renters

Answers

Answer:

1. health 2. disability

Explanation:

Answer:

health & disability

Explanation:

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