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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 AlsoAccounting 101: Debits and credits explainedDebit: Definition and Relationship to CreditDebits and Credits 101: Definitions & ExampleDifference Between Credit & Debit Cards
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