Closing Revenue Accounts Journal Entry

 

Revenue Accounts are temporary accounts, so there is a requirement to close all the revenues accounts at the end of the accounting period, so Revenues or Income Accounts are closed to Income Summary Account for the period.

As the journal entries to close all of the revenue accounts are the same, so, we record here a general entry to close each of the revenue accounts for the accounting period.

Examples of revenue accounts include sales, fees received, commission received, etc.

As the normal or usual balance of revenue accounts is credit, so to close these accounts, we debit these accounts and credit Income Summary Account as shown below:

(The Journal Entry To Close Revenue Accounts Includes Relevant Revenues Accounts And Income Summary Accounts)

                                                                  Revenues a/c  XXX

 

                                                                                          Income Summary a/c  XXX

 

                                               (Revenue Accounts Closed To Income Summary Account)

All the revenue t-accounts or ledgers’ accounts are closed for the period and these have no carried down balances for the accounting period.