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.
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