Income Summary Account Debit Or Credit
The normal, positive, or favorab le b ala nce of Income Summary Account is credit and unfavorab le, negative or unusual b ala nce is deb it. If there is a credit b ala nce, t he n it means credit side is more t ha n deb it side a nd if t here is a de b it b ala nce, t he n it s hows that de b it side is more tha n credit side and resulted a deb it b ala nce. If income summary account increases, t he n we credit it and if it decreases, we deb it it. Th e credit b ala nce of income summary account (w h ic h represents net income) is added to retained earnings account and deb it b ala nce (w h ic h s h ows net loss) is deducted from retained earnings accoun t.