Question

what type of account income summary is

Answer 1

Answer

Income Summary Account is a temporary account where all Income & Expenses account of the Income statement are transferred at the end of an accounting period.Income Summary account is used for closing the Revenue/Income and expense account .

-For Closing the Income/ Revenue Account , Income/ Revenue Account is debited and income summary is Credited.

-For Closing the Expense Account , Expense Account is Credited and income summary is debited.

-For Closing dividend Account , Dividend Account is Credited and income summary is debited.

-Further Income Summary account is closed by transferring the balance (profit/Loss) to Retained Earnings or the owner's capital account.

Thus Income Summary Account is a temporary account