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Entry that RB Auto would make to close their expense accounts at the end of the accounting period is debit salary by 4000, debit rent by 3000, debit purchase by 2000 and credit income by 9000.
This is the closing entry that RB Auto would make to close their expense accounts at the end of the accounting period from the trial balance.
What is trial balance?
A trial balance is a financial report that displays the general ledger's closing balances for all accounts at a certain point in time. The first stage in closing the books at the conclusion of an accounting month is to create a trial balance.
On the left side of the report, you will find a list of all the ledger accounts (from your chart of accounts). Any accounts that haven't been utilised throughout the time period are exempt. The following two columns show debit and credit balances, respectively. The sum of the debits and credits must be equal.
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