The correct closing entry for the bank account is:
A) DR Owner's capital account; CR Bank
B) DR Bank; CR Owner's capital account
C) DR Profit or loss summary account; CR Bank
D) No closing entry is required

Question

Quizplus · Accepted Answer

Closing entries are used to transfer balances from temporary accounts to permanent ones at the end of an accounting period, but bank accounts, being asset accounts, do not require closing entries.

The Correct Closing Entry for the Bank Account Is