Question

Which of these account(s) is/are never closed

• A. Salary A/c
• B. Debtors A/c
• C. Purchase A/c
• D. Sales A/c

Answer 1

Answer: (B)

Debtors A/c

Debtors A/c is never closed as it is a asset account.
All the Expenses and Income Accounts are closed at the end of the financial year. The balance of expenses or income accounts are transferred to Profit and loss A/c. But the balance of Asset account is shown in the balance sheet therefore, it is carried forward to next accounting year.