Close and Reverse

In closing entries, you're closing nominal accounts namely— revenue, income summary, expense and dividends accounts. As far as I know, there is a fixed pattern of accounts in every entry on this. The date is the end of the year. The amounts are place on debit or credit sides properly. After closing entries, there will always be post-closing trial balance. (Click here for more information)

Reversing entries are done at the beginning of the year. You won't reverse any depreciation. Accrued expense, prepaid expense, accrued revenue and unearned revenues are the accounts being reversed. (Click here for more information)