Closing Revenue Accounts Journal Entry
Revenue Accounts are temporary accounts, so there is a requirement to close all the revenues accounts at the e nd 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) ...