Example: G/L Year End Closing

This topic provides an example for G/L year end closing.

Suppose the following entries were the financial activity for a company for the fiscal year of 01/01/2002 to 12/31/2002 using the following accounts:

Account     Description
10000 Assets
20000 Liabilities
30000 Owner's equity
40000 Revenue
50000 Expense

Example of Ending Balances (12/31/2002)

Account     Balance
10000 100,000.00
20000 (64,500.00)
30000 (20,000.00)
40000 (23,500.00)
50000 8,000.00

Example of Year End Entries

Account     Balance
30000 15,500.00
40000 23,500.00
50000 (8,000.00)

Example of Ending Balance (12/31/2002) after Year End Balance

Account     Balance
10000 100,000.00
20000 (64,500.00)
30000 (35,500.00)
40000 00
50000 00
Note:  No entries were generated for Accounts Receivable of Cash, because they are asset accounts. Only revenue and expense accounts are closed out.