Tuesday, August 16, 2011

Can someone do this closing entry for withdrawals...PLEASE?

B. By crediting capital, you are lowering it because it normally has a credit balance. You need to lower this because the drawing account is a contra equity account, and all contras lower a buddy account. Drawing is credited because it normally has a debit balance, and crediting it for the same amount it zero it and it will be closed and ready for the next fiscal period.

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