ECONOMICS

Detailed explanation-1: -Closing balance-the closing balance is the amount of money the business has at the end of the reporting period, usually the last day of the month: closing balance = net cash flow + opening balance.

Detailed explanation-2: -The Closing Balance is the amount of cash at the end of the month (last day of month). The Closing Balance is calculated by the following equation: Closing Balance = Opening Balance add Total of Income less Total of Expenditure.

Detailed explanation-3: -To calculate net cash flow, simply subtract the total cash outflow by the total cash inflow.

Detailed explanation-4: -The debit or credit balance of a ledger account in the Chart of Accounts at the end of an accounting period or year-end is called closing balance. This closing balance becomes the opening balance for the next accounting period.