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.