Question

Debit side of income and expenditure account is greater itis termed as

Answer 1

Answer:

Deficit

Explanation:

Income and expenditure account is basically a nominal account and follows the rule:

Dr. All expenses and losses

Cr. All incomes and gains

So, if your Dr. side is greater than Cr. side, then expenses would be more than income, implying NOT a loss but a deficit since we are talking about NPO here and not Profit Earning Organisations.

Hope this helped:)