Sales A/c Dr To Trading A/c is an example of _____________.

Closing Entry

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Adjusting Entry

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Opening Entry

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Transaction Entry

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Solution

The correct option is A Closing Entry
At the financial year end, all nominal accounts i.e expense and income accounts are transferred to the trading and profit & loss account by passing the closing entry in books of account. Sales account is always having a credit balance. This will be debited by crediting the trading account.

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