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An expense is closed with a debit to the expense and a credit to the Income Summary Account. True or False?

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Question ajoutée par Said Shaban , Accountant , Tri State Materials Testing
Date de publication: 2015/08/02
Michael Lagunday
par Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC

My answer is false.

Expense’s normal balance is debit. So, to close the account it has to be credited. The entry for closing expenses is debit Income and expense summary and credit to Expenses.

Mohammed Asim Nehal
par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

F A L S E ................

Utilisateur supprimé
par Utilisateur supprimé

False>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

income summary accounts is new term atleast for me  it could be control accounts. expenses has to be adusted in expense only 

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