Income Summary Account Debit Or Credit

 

The normal, positive, or favorable balance of Income Summary Account is credit and unfavorable, negative or unusual balance is debit. If there is a credit balance, then it means credit side is more than debit side and if there is a debit balance, then it shows that debit side is more than credit side and resulted a debit balance.

If income summary account increases, then we credit it and if it decreases, we debit it.

The credit balance of income summary account (which represents net income) is added to retained earnings account and debit balance (which shows net loss) is deducted from retained earnings account.