Income Statement Closing Journal Query
Summary:
The Client wants to run the Income Statement Closing each month.
I have tried both the approach.
1) I have run the process by providing the closing account(Retained Earnings) and the period.
The result was, new journal created with Income and Expenditure reversed and Debiting/Crediting accordingly the Retained Earnings Account. I understand, these entries are created for Audit purpose. If this entry is posted, the result would be the Income and Expenditure will be zeroed out for the same period, i.e., these account will reflect zero balance in report. Retained Earnings are calculated, as expected.
2) I have run the process by providing the closing account(Retained Earnings, Period and "Income Offset Account")
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