Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 10)
What is the correct journal entry for transferring income and expenses at the end of the accounting period?
Debit Income Summary; Credit Revenue and Expenses
Debit Revenue and Expenses; Credit Income Summary
Debit Cash; Credit Income Summary
Debit Income Summary; Credit Cash
Explanation
To close revenue and expense accounts and transfer their balances to the Income Summary account, you debit the revenue accounts and credit the expense accounts.
Comments (0)
