During The Closing Process The Closing Entry To Reduce The Sales Revenue

Closing Entry of Sales Revenue Account To Income Summary Account

During the closing process, the closing entry to reduce the Sales Revenue Account is recorded by a debit to sales revenue account and a credit to Income Summary Account.

The entry to record is shown below:

                                                             Sales a/c  XXX

 

                                                                               Income Summary a/c  XXX

 

                                               (Sales a/c is closed to Income Summary a/c)

 

As the favorable balance of sales account is credit, so to close it we debit it in order to transfer it to income summary account.

Sales account is a temporary account so it has no balance at the end of the accounting period.

So, to close sales revenue account, we need to debit it and we can do so by transferring it to income summary account.