Question

Select the most appropriate alternative from those given below:
Debit balance of Profit and Loss A/c indicates _______.

• A. Gross Profit
• B. Net Profit
• C. Gross Loss
• D. Net Loss

Answer 1

The correct option is D Net Loss

Excess of expenditure over income in profit & loss account is called as net loss.

Profit & Loss Account

Particulars Amount Particulars Amount

To Salary 10000 By Gross Profit 60000

To Rent 35000 By Net Loss 5000

To Insurance 10000

To Indirect Expenses 10000

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65000 65000

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