Accounting & Bookkeeping & Small Business Forum

[uithorn]

Please could you help me close this book, I did close it "but" I am missing a $1000 i.s.o $6707 I am having a $7707.

Operating Statement
Dr Cr
Income Summary 9000Dr 8000Cr
Sales 12694Cr
Sales Returns & Allowances 53Dr
Purchases 1420Dr
Purchases Returns & Allowances 200Cr
Salary Expenses 3200Dr
Utilities Expense 55Dr
Telephone Expense 45Dr
Office Supplies Expense 60Dr
Insurance Expense 100 Dr
Depreciation expense 220Dr
bad Debts expense 34Dr


Totals 14187Dr 20894Cr
Net Income 6707Dr
Final Totals 20894Dr 20894Cr

[Ken]

When you close the books for year end, you will zero out each of the accounts by reversing each of the balances and the resulting balance will be closed out to equity. I do not understand your 1000 difference in the income summary, but as long as you debit the balances from the Credit Balance accounts and Credit the Balances from the Debit accounts, you should still come to zero.