Closing Balance In Accounting | Accounting Dictionary - Zoho Books

Maybe your like

Dictionary

Help
Videos
Developers
Resources
- What's New
- Blogs
- Accounting Terms
Sign In
Sign Up

Help
Videos
Developers
Resources
- What's New
- Blogs
- Accounting Terms
Sign In
Sign Up

x CLOSE

A
Accountant
Accounts
Accounts Payable (AP)
Accounts Receivable (AR)
Accrual Basis Accounting
Acid Test Ratio
Aging
Amortization
Appreciation
Assets
Audit
Audit Trail
Auditor
B
Bad Debts
Balance Sheet
Bank Statement
Base Currency
Bookkeeping
Bridging Software
Budgets
Burn Rate
C
Capital or Equity
Cash Basis Accounting
Cash Flow
Chart of Accounts (COA)
Closing Balance
Common Stock
Compensatory Balance
Consignment
Construction Industry Scheme
Contra Entries
Contract
Corporation Tax
Cost Basis
Cost of Capital
Cost of Goods Sold
Credit
Credit Note
CT600
Current Asset
Current Ratio
D
Day Book
Debit
Debit Note
Debt Ratio
Debt to Equity Ratio
Deferred Revenue
Deferred Tax Asset
Deferred Tax Liability
Deflation
Depreciation
Discounted Cash Flow
Dividends Payable
Double Entry System
Drawings
EC Sales List (ESL)
E
Earnings Per Share (EPS)
Equity
Expense
F
FIFO Cost Lot Tracking
Final Accounts
Final Declaration
Financial Institution
Finished Goods
First In, First Out (FIFO)
Fiscal Year
Fixed Assets
Forecasting
Foreign Currency
FRS 105
G
Generally Accepted Accounting Principles
Goodwill
Gross Profit / Loss
Gross Sales
I
Import VAT
Income (Net Income)
Income Summary Account
Income Tax
Inflation
Insolvency
Insurance
Intangible Assets
Inventory
Investments
Invoice
J
Job Costing
Journal
L
Last In, First Out (LIFO)
Ledger
Liability
Limited Company
Liquidity
LLP
Loan
Loan Waiver
M
Making Tax Digital
Making Tax Digital for Income Tax
Making Tax Digital for VAT
Management
Management Accounting
Marketable Securiteis
Mortgage
N
Net Profit / Loss
O
Opening Balance
Operating Cost Ratio
Operating Expenses
Operating Income
P
Payment Terms
Payroll
Petty Cash
Pro Rata
Profit and Loss Statement
Proforma Invoice
Purchase Order
Q
Quote
R
Realized Gain or Loss
Receivable Turnover Ratio
Reconciliation
Recurring Journal
Retained Earnings
Retainer Invoice
Revenue
S
Sales Order
Self Assessment
Single Entry System
Sole Trader
Statement of Accounts
Stock
Sundry Creditor
Sundry Debtor
Suspense Account
T
Tangible Assets
Trading Account
Trial Balance
Types of Accounts
U
Undeposited Funds Account
Unearned Revenue
Unrealized Gain or Loss
V
Valuation
VAT
VAT Exempt
VAT Flat Rate Scheme
VAT MOSS
VAT Return
VAT Reverse Charge
Vendor Credits
Voiding
Voucher
W
Waiver
Write Down
Write Off

HomeClosing Balance

The debit or credit balance of a ledger account in the Chart of Accounts at the end of an accounting period or year-end is called closing balance. This closing balance becomes the opening balance for the next accounting period.

For example, the positive or negative amount that you have in an account at the end of June 30, say Rs. 10,000 will be the closing balance for that account. Now, this amount will be the same at the start of July 1 for that account and it will become the opening balance on July 1.