Sales Revenue Closing Entry

Closing Entry For Sales Revenue Account

As Sales Account is a temporary account, so it is closed to Income Summary Account at the end of the accounting period.

Sales revenue closing entry is recorded when closing entry process is started after all the financial statements are prepared.

As, the normal, usual or positive balance of sales revenue account is credit, so in order to close it we need to debit it and credit income summary account.

Following journal entry is recorded to close sales revenue account as shown below:

                                                                               Sales a/c  XXX

 

                                                                                               Income Summary a/c  XXX

 

                                          (Sales Account Closed To Income Summary Account For The Period)