When there is a net loss,the entry to close the Income Summary account is
A)debit Owner's Capital and credit Income Summary.
B)debit Income Summary and credit Owner's Capital.
C)debit Net Loss and credit Income Summary.
D)debit Income Summary and credit Net Loss.

Question

Quizplus · Accepted Answer

When there is a net loss, the entry to close the Income Summary account involves debiting the Owner's Capital account and crediting the Income Summary account. This reflects the decrease in owner's equity due to the net loss.

When There Is a Net Loss,the Entry to Close the Income