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Close Account

In accounting, a closing entry calculates the net debit or credit balance for an account and then credits or debits this balance respectively, to zero the account's balance and move the balance to another account.

Example

Given a set of accounts:

AccountDebits PendingDebits PostedCredits PendingCredits PostedFlags
A010020debits_must_not_exceed_credits
B03005credits_must_not_exceed_debits
C0000

The "closing entries" for accounts A and B are:

Debit AccountCredit AccountAmountAmount (recorded)FlagsNotes
AC010balancing_debit(close account A)
CB025balancing_credit(close account B)

(Pass 0 as the Transfer.amount so that the application does not need to know (or query) the balance prior to closing the account. The stored transfer's amount will be set to the actual (non-zero) amount transferred.)

After committing these transfers, A and B's balances are zero:

AccountDebits PendingDebits PostedCredits PendingCredits PostedFlags
A020020debits_must_not_exceed_credits
B030030credits_must_not_exceed_debits
C025010