ABSTRACT
Closing the accounts is a purely technical term: in manual accounting it is not done any more. Ledger accounts are not closed when intermediate financial statements are prepared, but are used for the remaining accounting period. However, closing the accounts is an easy way to see which figures need to be recorded in the income statement and/or final balance sheet without preparing the eight-column financial statements. This chapter familiarises students with the closing of the ledge accounts. Examples are provided to explain how to use the ‘inventories’ ledger account. The chapter provides remarks and includes multiple exercises that help students try themselves and close the ledger accounts for a set of financial scenarios.
