Why do we need to make closing entries in accounting?

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Why do we need to make closing entries in accounting?

2006-10-10 17:24:50 · 2 answers · asked by Anonymous in Education & Reference ➔ Higher Education (University +)

2 answers

To transfer balances of a temporary account to that of a permanent account. (To start the next month with a zero balance)

Maybe this site is helpful:
http://www.quickmba.com/accounting/fin/closing-entries/

2006-10-10 17:36:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋

So, we can start all over again.

2006-10-11 00:32:22 · answer #2 · answered by Snaglefritz 7 · 0⤊ 0⤋