Does the “Year End Close” is different than “Month end close” - Part -1

Posted on July 18th, 2007 by Sanjit Anand | Print This Post | Email This Post

Yes…slightly but how….

Similar to a Period End Close, however period 13 or some cases period 14 (Adjusting Period) is closed. This period is used for year end adjustments and once closed the Net Profit / (Loss) for the current year is transferred to the Reserve Account in the Balance Sheet

Which accounts get closed at the end of a fiscal year?

Normally during year end close most of the temporary accounts get closed. Typically temporary accounts are all of the income statement accounts (like revenues, expenses, gains, losses),the income summary account, and any other account that is used for keeping a balance of the current year amounts. These account begin with zero balance in each fiscal year.