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Question
Excess of income over expenditure is also known as ____________.
Excess of income over expenditure is also known as ____________.
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Solution
The correct option is B Surplus
Surplus is the excess of income over expenditure. A credit balance in the Income and expenditure account shows surplus. It is the profit earned and should be added to the capital fund on the liabilities side of the balance sheet.
Surplus is the excess of income over expenditure. A credit balance in the Income and expenditure account shows surplus. It is the profit earned and should be added to the capital fund on the liabilities side of the balance sheet.
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