After closing entries are posted, the balance in the Owner's Capital account in the ledger will be equal to
A) the beginning Owner's Capital reported on the statement of owner's equity.
B) the amount of the Owner's Capital reported on the balance sheet.
C) zero.
D) the profit (or loss) for the period.

Question

Quizplus · Accepted Answer

The balance in the Owner's Capital account after closing entries are posted is the ending amount of the Owner's Capital reported on the balance sheet. The beginning balance reported on the statement of owner's equity is adjusted for any additional investments, withdrawals or net income/loss for the period. The profit (or loss) for the period is closed to the Owner's Capital account but does not necessarily represent the ending balance in the account. The balance in the Owner's Capital account is not zero after closing entries are posted.

After Closing Entries Are Posted, the Balance in the Owner's