October 30, 2016 admin

Net Profit or (Loss) After Income Tax

Liabilities and Net Worth

NET PROFIT OR (LOSS) AFTER INCOME TAX	NET WORTH ACCOUNT
	2850

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Clearing account used at year end to reflect the net profit or loss, after income taxes, for the current year.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Entry to close net profit, after income tax, for the accounting year to Retained Earnings				G
		Net Profit or (Loss) After Income Tax				2850
			Retained Earnings				2810

COMMENTS

At year end, an entry should be made to close all income and expense account balances (3000-9900) in this account.