Commercial Applications
The closing balance of this account shows surplus / deficit:
- Profit & Loss Account
- Receipts & Payments Account
- Balance Sheet
- Income & Expenditure Account
Accounting
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Answer
Income & Expenditure Account
Reason — The closing balance of Income and Expenditure Account shows surplus or deficit for the year. Surplus means excess of income over expenditure; deficit means excess of expenditure over income. (The closing balance of Receipts and Payments Account shows cash in hand and bank balance; Profit and Loss Account shows net profit or loss; Balance Sheet is not an account at all.)
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