Accounting entries passed in journal proper at the end of the year.

Opening entries

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Adjustment entries

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Closing entries

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Contra entries

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Solution

The correct option is C Closing entries
At the end of the financial year, all nominal accounts are closed by passing the closing entries. Respective expense account will be credited by debiting the trading and profit & loss account and respective income account will be debited by crediting the trading and profit & loss account.

Example:

Salary Account Balance Rs.5000

Profit & Loss A/c Dr. 5000
To Salary A/c 5000

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Similar questions

Q. Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts ____________.

Q. Opening entries are passed at the beginning of financial year to bring the assets and liabilities into the books of account.

Q. A journal entry cannot be passed in a journal proper with the debit and credit note.

On 1st April, 2012, a Limited Company issued $11 %$ Rs 10,00,000 debentures at a discounr of $6 %$ repayable at the end of 5 years at par. Pass journal entries for the issue of debentures and prepare Discount on Issue of debentures Account for five years. Assume that the accounts are closed on 31st March every year.

Q. State whether the following statements are ‘True or False”.

1) Ledger is known as the book of original entry.
2) Narration is not necessary in ledger.
3) All accounts are closed down at the end of the accounting year.
4) Recording of a transaction in Journal is called posting.
5) Balance of personal account is brought down for the next year.
6) All transactions are recorded directly in ledger.
7) Ledger Folio and index is necessary for ledger.
8) Ledger posting is not necessary for Journal Proper.
9) Ledger Folio is recorded in Journal.
10) Ledger posting is made before passing Journal entry.

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