Total expenses and criting the expense accounts. We carry over the balance of the income summary account in the case of profit by. Making it a debit and making the capital account a crit. In the case of a loss we carry over the balance of. The income summary account by making it a crit and making the capital account a debit with the same amount. Transferring the balance of the personal withdrawals account by making it a crit and making. The capital account a debit with the same amount.
The beginning and end of the fiscal
Some people believe that the beginning of. The fiscal year depends on the start of the company’s activity or in line wit. The government’s fiscal UK Telegram Number Data year. Statements requires a lot of effort and a lot of time and it occupies almost the entire management team. This is why the company chooses the end of its financial year bas on its slow business season.
Determines the end of the year
An example of this is if we assume a company that manufactures soft drinks As it is Guatemala Phone Number List known that its production capacity reaches its peak in the summer it is not logical for it to begin closing its accounts and preparing its financial statements in the summer. This will affect production as the management’s effort will be distribut over production and preparing the financial statements.
