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What are Opening and Closing journal entries?
At the end of every accounting year all the accounts are closed by passing CLOSING JOURNAL ENTRIES. Balances are then carried forward to the accounts by passing OPENING JOURNAL ENTRIES at the beginning of the current year. It includes Adjustment entries, Rectifying entries and Transfer entries. Few special items like –
- Assets purchased on credit
- Assets sold on credit
- Interest on capital
- Goods taken by proprietor for personal use
- Free sample goods
- Lost goods
- Endorsed bill
- Dishonored bill
Problems faced by the students in passing journal entries-
- Students face many problems regarding Journal entries because of double entry system that is what to credit and what to debit.
- There are three golden rules of accounting. We provide homework help to the students to make them understand the application of such rules.
- Many students get confused about closing journal entries. It must be kept in mind that closing entries are made for nominal accounts only.
- Treatment of sales / purchase return by referring debit / credit note is often confusing. Adjustments are required in amount payable and amount receivable.
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