Question

28. The balance of an expense account is transferred to the
(A) Balance Sheet
(B) Cash Flow
(C) Profit and Loss account
(D) Trading account​

Answer 1

Answer:

I think answer will be option a.

I hope it will help you

Answer 2

We need to answer the query asked as to where the balance of an expense account is transferred.

• If the expense is a direct expense relating to business then it needs to be carried to Trading A/c
• If the expense is an indirect expense then it will be carried to the Profit and Loss account
• If the expense is totaled by maintaining a leger then ledger balance will be written to the balance sheet
• As the  question says 'balance of an expense account, ' it is assumed that a ledger is maintained
• So the correct answer will be (A) Balance Sheet