Closing Entries in Accounting: What Are They & Examples

This should match the withdrawal from your business’s bank account or equal the amount that the owners are contributing to the business to complete the purchase. Add this amount to your journal as a credit pointing to either the bank or appropriate owner equity account. At closing you’ll receive credit for any earnest money deposit that you made for the purchase. Important Adjusting Entries With PDF This QuickBooks transaction will cancel the value in the temporary account and bring its endi