In closing off the accounts the balance in the Cost of Sales account will be:
A)debited to the profit and loss account.
B)debited to the capital account.
C)transferred to the balance sheet.
D)credited to the drawings account.

Question

Quizplus · Accepted Answer

The Cost of Sales account is an expense account, and at the end of the accounting period, it is closed by transferring its balance to the Profit and Loss account to determine the net profit or loss.

In Closing Off the Accounts the Balance in the Cost