Which of the following statements about closing the accounts is NOT true?
A) Sales revenue account is debited.
B) Depreciation account is credited.
C) Share capital is debited.
D) A net loss is debited to the retained profits account.

Question

Quizplus · Accepted Answer

Share capital is not closed at the end of the accounting period as it represents the permanent investment of the owners in the company. It remains on the balance sheet as a part of the company's equity. Thus, it is not debited or credited during the closing process.

Which of the Following Statements About Closing the Accounts Is