ACCA Paper F3/FA/FFA: When closing the accounts, what should be done with an item which belongs in the SPL?

Question

When closing the accounts, what should be done with an item which belongs in the SPL?

Christy B. · Accepted Answer

The T account should be balanced, closed, and moved to the SPL account.

If it is an income item, then Dr the T account and Cr the SPL account.

If it is an expense item, the Cr the T account and Dr the SPL account.

When closing the accounts, what should be done with an item which belongs in the SPL?