The entry to transfer a net loss to the owner’s capital account would include a debit to?

2 Answers

• The entry to transfer a net loss to the owner’s capital account would include a debit to?

  C) the owners capital account and a credit to income statement

  Are you sure you didn’t mean “Income Summary” instead of income statement

  The entry would be:

  Dr Owner’s, Capital

  Cr Income Summary

• I say A. B doesn’t make sense because doing a credit to the owner’s capital would just increase the capital, which doesn’t add up if you just suffered a net loss. C doesn’t make sense because of the income statement part. An income statement is its own separate thing, it isn’t an account.