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Here, we study about most important Accounting topic that is “Closing Journal Entries”. What are Closing Journal Entries? Closing Journal Entries Definition Closing Entries are related to closing accounts of Revenues, Expenses and Dividends at the end of Accounting Period. At the end of Accounting Period, all the Temporary Accounts ( Revenues , Expenses And Dividends) are closed in order to bring down the balance of these types of account to Zero and transferred these accounts (Revenues And Expenses) to a Temporary Accou nt that is " I ncome Summary Account" that is different from    Income Statement or Profit And Loss Account and then finally Profit Or Loss, that is calculated from Income Summary Accou nt , is transferred to Statement of Retained Earnings . Dividend is the amount distributed to shareholders out of profits, so it is closed by transferring to Statement of Retained Earnings. Note: 1. Permanent Accounts ( Assets , Liabilitie