one) Report closing entries in the general journal. Observe the business won't utilize a Cost of Profits account so all accounts which are used to estimate expense of income have to be shut on to the Income and Reduction Summary account.
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2) Put up entries recorded n the journals to the right ledger accounts according to the firm's accounting policies and strategies.
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Depreciation is calculated on month-to-month basis using the straight line approach. The month-to-month depreciation charge is calculated given that the yearly depreciation cost divided by the volume of months in the 12 months.
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