Closing Transfers

 

  1. Debtors allowances closes off to sales

  2. Sales and cost of sales to the trading account - gross profit 

  3. Balance Trading account and close to profit and loss 

  4. All incomes and expenses to profit and loss 

  5. Balance profit and loss - net profit → Net profit to capital 

  6. Drawings closes to capital 

  7. Balance capital account 

Example is taken from Accounting Grade 10 (FlipHTML, 2015) 

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References

  • Anon., 2007. The Answer series: Grade 11 Accounting. 2007 ed. Cape Town: The Answer.

  • Anon., 2019. Investopedia. [Online]. Available at: https://www.investopedia.com/ [Accessed 3 October 2019].

  • Doctor, K., 2015. FLIPHTML5. [Online]. Available at: http://fliphtml5.com/fkul/mgtf/basic [Accessed 1 October 2019].

  • T Hall, D. W. P. S. A. A. P. G. P. F., 2017. Accounting Study Guide. 2016 ed. Musgrave: New Generation Publishers .

Neha Pillay (2019)

Grade 10Keroshan PillayComment