Expense Closing Entry
Expe nses closing entries are recorded at the time of closing Temporary Accounts to Income Summary Account for t he period. As Expenses Accounts have no b ala nces, so t hese accou nts are required to close at t he e nd of t he accou nting period. To close expenses accounts, we need to credit these as these have normal debit balances, so to close these, we credit these and debit Income Summary Account which is a temporary account. Examples of expenses accounts are rent, Salaries, Wages, etc. As it is very lengthy and time-consuming work to record closing expense accounts journal entries for all of the expenses accounts separately, so, simply, we record only the closing journal entry for each of expense account in a general entry form which is shown below: Income Summary a/c XXX Expenses a/c XXX