What Is an Income Summary Account?

The profit and loss summary account is an account that summarizes account balances such as operating income, gains, expenses, and losses. After the annual closing of the account, the balance of the account, that is, net income or net loss, should be transferred to the retained earnings account.

Profit and loss summary account

Right!

The profit and loss summary account is an account that summarizes account balances such as operating income, gains, expenses, and losses. After the annual closing of the account, the balance of the account, that is, the net income or net loss, should be transferred to the retained earnings account.

The operating account, non-operating income, etc. transferred from each income account to the borrower at the end of the credit registration period for this type of account. Additional and non-operating expenses. At the end of the period, the credit balance at the end of the period represents the total profit obtained by the enterprise. The "profit of the year" account belongs to the profit and loss summary account. The indicators provided by the profit and loss summary account and their structure are shown in the figure.

1 Chen Jinchi, English-Chinese Modern Dictionary of Finance and Accounting. China Finance and Economics Press, 2009.12.

2 Wang Fusheng. Basics of Accounting. Harbin Institute of Technology Press, 2001. ^[1]