After Posting The Second Closing Entry To The Income Summary Account, The Balance Will Be Equal To

After The Second Closing Entry Is Posted Income Summary Is Equal To What?

After Posting The Second Closing Entry To The Income Summary Account, The Balance Will Be Equal To Net Income or Net Loss for the period, otherwise, income summary account is not calculated accurately and correctly and there are errors and mistakes in the calculation.

The first entry closes all of the Revenue Accounts to income summary account and the second entry closes all of the Expense Accounts to income summary account and the difference between revenue accounts and expense accounts or the difference of credit side and debit side of income summary account shows either Net Income Or Net Loss for the period.

First Closing Entry (To Close Revenue Accounts)

                                                  Revenue Accounts a/c  XXX

 

                                                                                      Income Summary Account a/c  XXX

                                                    

                                                (Revenue Accounts Closed To Income Summary Account)

 

Second Closing Entry (To Close Expense Accounts)

                                                 Income Summary Account a/c  XXX

 

                                                                                                     Expense Accounts a/c  XXX

 

                                             (Expense Accounts Closed To Income Summary Account)