Crash course expense account: From equity to expenses in the P&L account to the closing balance account

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Herr Tafelschwamm

Published on Aug 5, 2024
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The expenses and income form the profit and loss accounts, which are not shown in the opening balance sheet. In addition to the inventory accounts, they are used to determine the profit and loss on the P&L account. In the current financial year, the expenses are posted to the expense accounts in the debit and then closed via the P&L account. The P&L account is then closed to determine the profit or loss for the current financial year. This closing balance is then offset against the equity. If there is a profit, the equity increases; if there is a loss, the equity decreases. The closing balance of the equity thus created is then posted to the closing balance account at the end of the year and shown in the closing balance sheet. ____________________________ I really hope that this video has helped you to understand the topic better 🙂 Since I am certainly not infallible, I am always grateful for praise and criticism so that I can do it either just as well or even better next time 😉 If you have any topic requests because you have a test or an exam coming up or you just want to know more about a certain topic, then feel free to write to me in the comments under the videos or directly by message on Instagram: @herrtafelschwamm / herrtafelschwamm You will find a few playlists attached that could also help you. I will gradually expand the playlists, as I still have countless videos in my head that I would like to implement 😉 Videos on external accounting / posting records and posting on T-accounts: • Basics of external accounting... Exercises on external accounting as preparation for class tests: • Exercises on external accounting... Videos on cost and performance accounting (KLR): • Cost and performance accounting - From the... Videos on business administration: procurement and warehousing: • Business administration: procurement and warehousing - V... Videos on business administration: financing and investment • Business administration: investment and financing - A...

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