Question

The credit balance of Profit and Loss Account. Answer in a word / phrase / term.

Answer 1

Hey mate. ✌️✌️


The credit balance of Profit and Loss Account⤵️⤵️⤵️⤵️

Net Profit

Answer 2

The credit balance of Profit and Loss Account is referred to as net profit.

* In case of a profit and loss account, there can be two sides- credit and debit.

* In cases where the credit side is observed to be higher than the debit side, it is a case of profit and is referred to as the credit balance.

* In other cases where debit side is higher, there is a loss incurred and is thereby referred to as debit balance.