Usual Or Normal Balance Of Income Summary Account
The normal, positive, favourab le or usual b ala nce of Income Summary Account is credit b ala nce b ecause usually reve nues exceeds expenses accounts during t he accou nting period for a profitab le b usi ness. T he credit b ala nce represents t he Net Profit or Net Income of t he b usi ness for the current accounting period. On t he other ha nd, t he negative, unfavourab le or u nusual b ala nce of income summary account is deb it b ala nce resulting a net loss for t he b usi ness. As inc ome summary accou nt is a temporary account, so we close it to retained earnings accoun t according to its credit b ala nce or deb it b ala nce t hat must match with the I ncome Statement’s b ala nce. So, we can say t hat i ncome summary eit her has a credit b ala nce usually or a de b it b ala nce unusually and we close it according to the basis of its balance.