Accountıng I Deneme Sınavı Sorusu #1313753
If the company has a profit at the end of the period, To which of the following, the credit balance of the Income Summary account is transferred?
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To the revenue account |
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To the statement of owner’s equity |
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To income summary account |
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To expense accounts |
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To the credit side of Capital account |
Yanıt Açıklaması:
If the company has a profit at the end of the period, the credit balance of the Income Summary account is transferred to the credit side of Capital account, because profit increases the Capital. If there is a loss, the debit balance of the Income Summary account is transferred to the debit side of Capital account, because loss decreases the Capital.
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