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How do you do the income summary?
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
What do you mean by debit and credit in tally?
A credit and debit tally is the total of the credits and debits, separately. The difference between the totals is the net profit or loss.
Is net income a debit or credit?
does net income have a normal debit or credit balance
A net loss is entered in the work sheet's?
Income Statement Credit and Balance Sheet Debit columns.
If The total debit column exceeds the total credit column of the income statement columns on a worksheet?
the company has a net loss
What is the format for profit and loss account?
we show indirect expenses on debit side and indirect income on credit side. indirect expenses like salaries, Rent, carriage outward, staffwalefare expenses and other expneses and indirect income like commission received, discount received and others. if credit side more that debit side it means Net profit and debit side more than credit side it means Net loss.
Is a net loss closed as a debit to owner's capital?
No. It is closed as a credit owner's capital. Chapter 4 on page 217--Closing the accounts.
Difference between debit and credit in accounting?
A debit is money paid out or a loss, a credit in income or a gain.
What is the journal entry to record fixed asset disposals?
[Debit] Accululated Depreciation xxxx [Debit] Loss on disposal of asset xxxx [Credit] Asset account xxxx Entry 2 [debit] Profit and loss account xxxx [Credit] Loss on disposal of asset xxxx
What is journal entry to taking funds to reserve account?
[Debit] Net income account [Credit] General Reserves
Does retained earnings have a debit balance?
Retained Earnings normally has a credit balance. Net loss will be debited to Retained Earnings account thus results to a debit balance. Retained Earnings with a debit balance will be called as 'Deficits" or "Accumulated Deficits".
A net loss appears on the work sheet in what column?
debit column of the Income Statement columns
