Commercial Applications
The closing balance of this account shows surplus / deficit:
- Profit & Loss Account
- Receipts & Payments Account
- Balance Sheet
- Income & Expenditure Account
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.)
Related Questions
Identify which of the following does not have an opening balance.
- Balance sheet
- Income and Expenditure
- Receipts and Payment account
- Profit and Loss account
…………… is a summary of cash transactions.
- Income and Expenditure Account
- Balance Sheet
- Profit and Loss Account
- Receipts and Payment Account
…………… account is prepared to ascertain surplus or deficit at the end of an accounting year.
- Income and Expenditure
- Balance sheet
- Profit and Loss
- Receipts and Payment
…………… records all cash transactions whether they belong to the current year, previous year or future year.
- Profit & Loss Account
- Income & Expenditure Account
- Receipts & Payments Account
- Personal Account