Commercial Applications
If the total of …………… side is greater than the total of …………… side, it is called 'surplus' or 'excess of income over expenditure'.
- Debit, credit
- Credit, debit
- Credit, credit
- Debit, debit
Answer
Credit, debit
Reason — In Income and Expenditure Account, incomes are shown on the credit side and expenses are shown on the debit side. If the total of the credit side (income) is greater than the total of the debit side (expenditure), the difference is called 'surplus' or 'excess of income over expenditure'. Conversely, if debit total exceeds credit total, it is called 'deficit'.
Related Questions
It contains both capital and revenue items.
- Receipts and Payments Account
- Income and Expenditure Account
- Balance Sheet
- None of these
Which of the following is/are correct statement(s)?
Statement 1: Income and Expenditure Account includes both capital and revenue items.
Statement 2: Receipts and Payments Account is a summary of cash transactions over a specific period.
- Only Statement 1 is correct
- Only Statement 2 is correct
- Both Statements 1 and 2 are correct
- Both Statements 1 and 2 are incorrect
Which of the following is/are correct statement(s)?
Statement 1: Income and Expenditure Account includes both capital and revenue items.
Statement 2: Receipts and Payments Account is a summary of cash transactions over a specific period.
- Only Statement 1 is correct
- Only Statement 2 is correct
- Both Statements 1 and 2 are correct
- Both Statements 1 and 2 are incorrect
…………… shows the financial position of the organization.
- Trial balance
- Profit and Loss account
- Balance sheet
- Income and Expenditure account