Question

What do closing entries accomplish?

Answer 1

The Purpose of Closing Entries. A term often used for closing entries is "reconciling" the company's accounts. Accountants perform closing entries to return the revenue, expense, and drawing temporary account balances to zero in preparation for the new accounting period.

Answer 2

Answer:

closing entry:

1.Balances of all nominal accounts are required to be closed at the end of the accounting period ?

to facilitie preparation of trading and profit and loss account

2.how it is done?

it is done by passing closing entry in the journal proper

3.eg?

puchase has debit balance and purchase return has credit balance at the end of the accounting year balances of purchase return account is closed by transferring to purchase account