Question:
Excess of debit in Profit and Loss Account is called:
Excess of debit in Profit and Loss Account is called:
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Net loss occurs when a business’s expenses are greater than its revenue in a given ac counting period.
Updated On: Dec 18, 2024
- Net profit
- Net loss
- Gross profit
- Gross loss
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The Correct Option is B
Solution and Explanation
If the debit side of the Profit and Loss Account exceeds the credit side, it indicates a Net Loss. This happens when total expenses exceed total revenues.
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