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The closing process seeks to reduce the balance of each account that needs to be closed to zero; therefore, the closing entry must reverse whatever balance the account already has. This means that any (temporary) account that normally has a credit balance will be closed by posting a debit (and vice-versa). Revenue is an example of an account that must be closed with a debit, since it is normally a credit account.
If your account was closed by you going into the bank and withdrawing the balance of the funds to close account, no. This account has been officially closed and is no longer active. However, if your bank account was closed due to lack of funds and put into the overdraft mode; yes. In fact you need to deposit funds as soon as possible to bring the account into the positive and to avoid any further charges or collection issues. NO
The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.
Can_a_dormant_account_be_closed_and_balance_transferred_to_Profit_loss_account
== == A Deragatory record is an account that has had a history of late payments. A collection account is an account that was not paid on time or at all, and was closed by the creditor and sold to a collection agency.
Can a checking account be closed when you have a neg balance
income summary account.
Yes, if you still owed a balance at the time the account was closed. Just because a company closes an account does not mean that any balances that are owed to them disappear. If your account was closed and there was still a balance outstanding and you did not pay that balance, the company has every right to collect the balance and any interest outstanding.
Neither. Sales will be listed as an income statement account on the firm's trial balance. Once the accounts are closed at year end, sales will be closed into Retained Earnings.
It depends on why the bank closed your account.No If:The bank closed your account because you did not use the account for the past few months orThe bank closed your account because you did not maintain minimum balance requirements orYes If:a. The bank closed your account because the account was involved in suspicious activities like money launderingb. The bank closed your account because links to known terrorists or drug dealers were found from your bank accountc. The bank closed your account because you issued checks to people without maintaining sufficient balance in your bank account
Yes, until the account balance is paid in full.
There could be several reasons for a large negative balance in your checking account. It could be due to overspending or insufficient funds to cover transactions, such as bounced checks or declined debit card charges. It's important to review your account activity and contact your bank to understand the specific cause and work on a solution.