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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)                                                                   ...

Here, we will study about journal entries related to I ncome Summary Account and then record these entries in its t account or general ledger’s account. As we know that an income summary t account (which is a temporary account) is prepared to close all the revenues and expenses accounts i.e., temporary accounts at the end of the accounting period. So, t here are three possible entries related to the income summary account. 1. Closing All Revenue Accounts The first entry is related with transferring of revenues accounts to income summary account in order to close revenue accounts for the period. The entry to record is shown below: Closing Revenue Accounts Journal Entry                                    Revenue a/c  XXX                                               ...