SPECIAL ACCOUNTS AND ENTRIES 157 



The following closing journal entries are prepared : 



Loss and Gain $60.00 



Labor $60.00 



Swine 150.00 



Loss and Gain 150.00 



Corn 100.00 



Loss and Gain 100.00 



Loss and Gain 180.00 



General Expense 180 . 00 



Loss and Gain 10.00 



Proprietor's Capital. . 10 . 00 



ing entries involve the nominal accounts, some mixed ac- 

 counts, and the Capital account at the same time. Accord- 

 ingly they are made in the journal rather than in the cash 

 book. If the cash journal is used they are made in the 

 "sundry" columns, each item being posted separately. 



The entries are made at the same time, under the same 

 conditions and with the same debits and credits expressed 

 as they are when made into the ledger accounts direct. 

 When made in the journal they must be posted to the 

 ledger accounts involved. The ledger accounts affected are 

 then dealt with as previously discussed. 



In commercial accounting it is considered better to make 

 the closing entries after preparing the financial statements. 

 In farm accounting it is simpler to make the closing en- 

 tries and close the ledger before preparing the statements. 

 This was brought out in the discussion of the trial balance 

 after closing, in Chapter IV. 



A typical closing entry is presented in Illustration 30. 

 The singular word "entry" is used although the process 

 under this method is a series of entries. The series of 

 entries is better than one combined entry. It avoids anal- 

 ysis of the Loss and Gain account later. 



