After all closing entries are made and posted, the balance in the owners' capital account in the ledger will be equal to
A) Profit or loss for the year
B) The balance of owners' capital on the post-closing trial balance
C) Zero
D) The beginning balance in owners' capital in the statement of changes in equity
E) The balance of owners' capital on the pre-closing trial balance

Question

Quizplus · Accepted Answer

After all closing entries are made, the balance in the owners' capital account in the ledger will be equal to the balance of owners' capital on the post-closing trial balance. This is because the purpose of closing entries is to transfer the net income or loss to the owners' capital account, which is then reflected on the post-closing trial balance. Therefore, the balance in the owners' capital account is not zero, nor is it equal to the beginning balance or the pre-closing trial balance.

After All Closing Entries Are Made and Posted, the Balance