Question

EXPLAIN THE TERMS SURPLUS AND DEFICIT INCOME and expenditure account.

Answer 1

Answer:

a surplus describe an amount of an asset or resources that exceeds the portion that actively utilized

Answer 2

Surplus or deficit balance

If revenues of a non-trading concern exceed its expenditures during the year, the income and expenditure account shows a surplus balance; and if, on the other hand, the expenditures exceed income, the account shows a deficit balance.