Question: 1. Temporary accounts in the ledger should have a zero balance. 2. New figure for capital is determined inclosing. All closing can be done from

1. Temporary accounts in the ledger should have a zero balance.
2. New figure for capital is determined inclosing.
All closing can be done from the worksheet. Income Summary is a temporary account in the ledger.

From the above worksheet, explain the four steps of closing. Keep in mind that each individual expense normally would be listed in the closing process.

Worksheet IS BS Dr. Cr. Cr (2) Revenue (1) Withdrawals (4) NI (3)

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