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Solution According to accounts, all revenues have a credit balance and since an owner’s equity is also a credit balance. The revenues are closed and transferred under the head of the shareholder’s retained earnings account. Therefore, the owner’s equity must be recorded on the credit side. Also see:See AlsoGolden Rules of Accounting: Overview and TypesDoes a debit or credit increase an expense account on the income statement? - Universal CPA ReviewHow Does A Home Equity Loan Work?Vernimmen | corporate finance | Glossary definition : Equity credit
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