Question

Can we carry forward the closing balance of Expenditure and Income ledger at the

year end, to the next year? Give one reason to justify your answer.​

Answer 1

Answer:

Closing balance of Income and Expenditure A/c is transfered to Capital A/c

hence, it cannot be carried forwarded.

Explanation:

closing balance in Income and Expenditure A/c is the net Profit/ Loss for the business and hence its a statement and cannot be carry forwarded.