Why Is Revenue Negative In Accounting
Whe n Income or Revenues Accounts Increase, we credit these accounts and whe n these decrease, we deb it these types of accou nts as per Rules of Deb it A nd Credit . The normal or usual balance of Revenues Accounts is credit which is closed to Income Summary Account at the end of the accounting period. However there some cases in which we debit revenues which is unfavorable or unusual situation and in such situation, the revenue is called N egative Revenue. These cases are mentioned below: 1. Post Closing Entries At the end of the accounting period, revenues are closed to Income Summary Account because revenues are Temporary Accounts which are ultimately recorded on Income Statement or Profit And Loss Account for the period. The Closing Entry to close Revenues is shown below: ...