How do you cap off old knob and tube wiring running to a light bulb in the closet?

I demoed the closet wall to put closet doors in and have it down to the studs. I found two wires running down a bare stud to an old light bulb socket fixture and I want to remove this fixture and cap off the wiring. Do I put a junction box on one of the studs, run the wires through it and cap it off with safety nuts and then cap the box? Do I need to leave the junction box cap flush with the drywall for access?