Question

Give one word/term or phrase for each of the following statements.

Credit balance of Profit & Loss Account.

Answer 1

Credit balance of Profit & Loss Account -Net Profit

Explanation:
The credit balance of Profit & Loss Account implies the excess of credit side over its debit side. All the indirect incomes are recorded on the credit side and all the indirect expenses are recorded on the debit side. Thus, when the income of a business exceeds the expenses, the resulting figure will be the net profit of the business.