Closing entry
The journal entry at year end that zeroes every revenue and expense account into retained earnings so the new year starts clean.
In Solo Superstars
Posted only by the year-end close, with source "year end closing", and reversed only by reopening the year. You never type it.
Example
Debit every 4xxx account by its balance, credit every 5xxx–9xxx account by its balance, and post the net 41,300 to 3300 Retained Earnings.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- close-out entry
Related
- Year-end close — Closing the fiscal year: zeroing revenue and expense accounts into retained earnings, rolling owner draws into equity, and locking the year.
- Retained earnings — Profit the business has kept over the years rather than paid out. Each year-end close moves net income here.
- 3300 Retained Earnings — Profit the business has kept over the years rather than paid out. Each year-end close moves net income here.
- Reversing entry — A mirror-image journal entry that cancels an earlier one without deleting it. How every correction is made, so both entries stay in the history.