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Which is the closing journal entry to close 'interest recieved' account? |
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Answer» tion:A closing entry is a journal entry that is made at the end of an accounting period to TRANSFER BALANCES from a temporary account to a permanent account.Companies use closing entries to RESET the balances of temporary ACCOUNTS − accounts that show balances over a single accounting period − to ZERO. By doing so, the company moves these balances into permanent accounts on the balance sheet. These permanent accounts show a company’s long-standing financials. |
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