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Former Member
Aug 29, 2007 at 01:01 PM

clearing account in which BS category

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hi,

i know the income summary account in the example not needed also no issue.

my question now is how do i know this kind of account should be BS receivable or payable account? i mean when i create in COA.

i know that when it is debit balance then it is receivable whereas otherwise payable. like in this case is i think should be payable.

just like some of the clearing account. when debit balance it is BS receivable.

so my question is to know this kind of clearing account i should create under asset or liabilities category.

thanks

date acc dr cr

9/30 rev 1100

income summary 1100

9/30 income summary 1275

expenses 1275

9/30 retained earnings 175

income summ 175