Question

Based on the list of accounts, what other account is involved when closing the Income Summary account?

Answer 1

The income summary account is a temporary account used to make closing entries ,all income statement items like revenue and expenses are transfered at the end of the accounting period in to the summary account

Firstofall all expenses and revenues are transfered to income summary account for the purpose of closing of books ,only revenue ,expenses,dividend accounts are closed .Items in the nature of assets liabilities are not transfered to income summary account.

Closing the revenue account

Closing the expense account

Closing dividend account

Closing balance is transfered to retained earnings account

Incase of partnership closing balance of income summary transfered to capital account