The closing balance sheet is a balance sheet that is drawn up at the end of an accounting period. According to Section 242, Paragraph 1 of the German Commercial Code (HGB) it is regulated that every businessman has to draw up a balance sheet for the end of a financial year.
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Assets and capital ratios in the closing balance
A closing balance sheet shows the assets and capital situation of a company. B. land, machines, bank balances and as liabilities equity, liabilities.
After the inventory has been carried out, a (main) final overview is created. The transfer postings are then made from the balance sheet overview and the balance sheet accounts are closed via the closing balance sheet account. The sums of the closing assets (SB) and the closing liabilities (SB) must be the same. The white space on the liabilities side is to be limited with an accountant's nose, among other things so that no entries can be made afterwards.
The closing of the passive accounts via the closing balance account is the preliminary stage for creating the closing balance. As a rule, the term closing balance is only used for the annual balance sheet. In practice, however, contracts are also drawn up for shorter periods of time.
The closing balance of a billed economic period is at the same time the opening balance of the subsequent, new billed period. This corresponds to the principle of balance sheet identity. This closes the accounting group from balance sheet to balance sheet.