Closing Journal or Closing Entries

Balance Revenues, Expenses, and Withdrawals were transferred to the owners of capital called Closing Journal (Closing Entries). This process is often referred to as Closing Entries.
Closing Journals four made ​​at the end of the year for:
1. Each income is debited for the amount in the balance sheet and Profit and Loss Summary is credited to the total revenue.
2. Each expense account is credited
3. Income Summary is debited for the amount in the balance sheet (net income), and capital account is credited for the same amount.
4. Withdrawal of account is credited  for the amount in the balance sheet , and the capital is debited for the same amount.


Example:
Service Revenue                                  $ xxx
Rental income                                      $ xxx
                            Highlights Income                                   $ xxx

Highlights Income                                $ xxx
                            Salaries                                                  $ xxx
                            Rent expense                                         $ xxx
                            Depreciation expense                             $ xxx
                            Utilities expense                                     $ xxx
                            Consumables load                                 $ xxx
                            Insurance Expense                                 $ xxx
                            Other expenses                                     $ xxx

Highlights Income                                $ xxx
                             Capital                                                $ xxx

Capital                                                $ xxx
                             Withdrawal / Prive                              $ xxx