The Withdrawals account bypasses the Income Summary account when it is being closed.

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The Withdrawals account is a temporary equity account that is used to track owner withdrawals throughout an accounting period. When closing the accounts at the end of the period, the balance in the Withdrawals account is transferred directly to the owner's capital account or retained earnings account, bypassing the Income Summary account. This is because withdrawals represent a decrease in equity and are not considered to be revenue or expenses.

The Withdrawals Account Bypasses the Income Summary Account When It