WorksheetsClosing the General Ledger
Total questions: 13
Worksheet time: 7mins
After a Trial Balance you need to ......
Prepare an Income Statement
Prepare a Balance Sheet
Prepare a Budget
Close off all accounts for profit calculation
Profit is the excess of revenue over expenses.
False
True
Which accounts are balanced at the end of the reporting period?
Revenue and Expenses
Assets, Liabilities and Owner's equity
A general ledger account that summarises all revenue and expenses for a reporting period is the ....
Capital account
Bank account
Profit and Loss Summary
Profit Account
The purpose of a closing entry is ....
to end the reporting period
to close revenue and expense accounts
to close the business
The correct entry to close expenses to the P & L Summary is...
debit expense and credit P&L summary
debit revenue and credit P&L summary
credit expense and debit P&L summary
credit expense and debit capital
The correct entry to close Revenue accounts is ....
credit revenue debit P&L summary
credit P&L summary debit revenue
debit revenue credit capital
debit capital and credit revenue
If there is a profit the P&L summary will be....
debited and capital credited
credited and capital debited
If there is a Loss the P&L summary will be
debited and captial credited
credited and capital debited
Drawings is classified as...
Owner's Equity
Negative Owner's Equity
Asset
Equity
To transfer Drawings to Capital you need to...
credit drawings and debit capital
credit capital and debit drawings
Sales returns is classified as a
Revenue
Expense
Negative Revenue
Negative Expense
To close the Sales Returns account you need to.
credit sales return and debit P&L summary
debit sales returns and credit P&L summary
