Closing Entries Explained: Definition, Examples, Practice & Video Lessons
In the above case, a net credit of ₹ 55,00,000 or profit will finally be moved to https://www.bookstime.com/articles/net-realizable-value the retained earnings account by debiting the Income summary account. The accounting assumption here is that any profit earned during the period needs to be retained for use in future company investments. Clear the balance of the…