Closing journal entry

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Closing journal entry is a journal entry that is prepared to (a) reset all temporary accounts to a zero balance and (b) update Owner's Capital to a new balance.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Closing journal entry. A journal entry that is prepared to (a) reset all temporary accounts to a zero balance and (b) update Owner's Capital to a new balance.

Related concepts

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