Closing Asset Ledger Account


This is how an asset ledger looks like before closure:

Cash Account (Asset)
DateParticulars$DateParticulars$
01 Dec 2011Share Capital10,00015 Dec 2011Salaries Expense2,000
15 Dec 2011Bank Loan10,00031 Dec 2011Salaries Expense3,000
15 Dec 2011Sales Revenue7,500-
31 Dec 2011Sales Revenue7,500-

In order to close the account, we must first total both sides. The credit side adds up to $5,000 where as the debit side adds up to $35,000. Therefore, as $35,000 is higher than the total of credit side, we write this amount at the end of both sides.

Closing figure is the balancing figure on the credit side which in this case is $30,000 (35000 - 2000 - 3000).

Being a balance sheet ledger account, the closing balance will be carried forward to the next accounting period.

This is how the asset ledger will look like after closure:

Cash Account (Asset)
DateParticulars$DateParticulars$
01 Dec 2011Share Capital10,00015 Dec 2011Salaries Expense2,000
15 Dec 2011Bank Loan10,00031 Dec 2011Salaries Expense3,000
15 Dec 2011Sales Revenue7,500-
31 Dec 2011Sales Revenue7,50031 Dec 2011Balance c/d30,000
35,00035,000

The closing balance amount of $30,000 will be posted in the trial balance in respect of cash.