Profit is entered as the balancing amount in the debit side of the Income statement columns and the credit side of the balance sheet columns of the worksheet.

Question

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Profit is a positive value that increases the owner's equity. In the income statement, it is shown as a balancing amount on the debit side, which means it increases the total debits and makes the income statement balance. In the balance sheet, it is shown as a balancing amount on the credit side, which means it increases the total credits and makes the balance sheet balance.

Profit Is Entered as the Balancing Amount in the Debit