Closing Income Ledger Account


This is how an income ledger looks like before closure:

Sales Revenue Account (Income)
DateParticulars$DateParticulars$
-15 Dec 2011Cash7,500
-31 Dec 2011Cash7,500

In order to close the account, we must first total both sides. The credit side adds up to $15,000 where as the debit side does not contain any balance. Therefore, as $15,000 is higher than the total of debit side, we write this amount at the end of both sides.

Closing figure is the balancing figure on the debit side which in this case is $15,000.

Being an income statement ledger account, the closing balance will transferred at the period end to income statement.

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

Sales Revenue Account (Income)
DateParticulars$DateParticulars$
31 Dec 2011Income Statement15,00015 Dec 2011Cash7,500
-31 Dec 2011Cash7,500
15,00015,000

The closing balance amount of $15,000 will be posted in the trial balance in respect of sales revenue.