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Review and complete the following statement regarding the Income Summary account. The Income Summary account is (debited/credited) for the sum of all revenue accounts and is (debited/credited) for the sum of all expense accounts and its balance will be transferred to the (Capital/Cash) account.

Answer :

Answer:

credited ; debited ; retained earnings or capital account

Explanation:

The closing entries are as follows

Sales Revenue A/c Dr XXXXX

           To Income Summary XXXXX

(Being revenue account closed)

Income summary A/c Dr XXXXX

                To Expenses A/c XXXXX

(Being expenses accounts are closed)

Income summary A/c Dr XXXXX

            To Retained earning XXXXX

(Being the difference is credited to retained earning)

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