Question

debit balance in profit and loss account is profit comment​

Answer 1

Answer:

Nope it is net loss... Whichi is transferred to capital account and is deducted from capital

Answer 2

Debit balance in the profit and loss account denotes loss because expenses exceed revenue.

Explanation:

• The Profit and Loss Account is an annual statement that displays the net results of a company's operations for a particular period. This section accounts all the expenses incurred and incomes earned during the reporting period.

• Debit balance of the profit and loss account shows loss as here, expenses are more than the revenues. It is deducted from the Capital Account.

• While, the Credit balance of Profit and Loss Account shows profit as here, revenues are more than expenses. It is added to the Capital Account.