What is Income Summary Account
Income Summary Account In Accounting Income Summary Account is a Temporary Account which is prepared to close temporary accounts i.e. Revenues and Expenses when we prepare Closing Journal Entries at the end of the accounting period. All the revenues and expenses accounts are transferred to this account from Income Statement or Profit And Loss Account . Income summary account is prepared to close temporary accounts at the end of the accounting period. The N et income / N et profit or N et Loss for the accounting period calculated under this account is always equal to the net income or net loss shown in the income statement. The journal entries for closing revenues and expenses accounts are shown below: For Closing Revenues Accounts Revenues a/c XXX ...