Practicing Success
Practicing Success
CUET Preparation Today
Match List – I with List – II for the difference between debit side and credit side of account.
Choose the correct answer from the options given below : |
A-IV, B-III, C-II, D-I A-III, B-IV, C-I, D-II A-I, B-II, C-III, D-IV A-IV, B-III, C-I, D-II |
A-IV, B-III, C-I, D-II |
The correct answer is option 4- A-IV, B-III, C-I, D-II.
The trading and profit and loss can be seen as combination of two accounts, viz. Trading account and Profit and Loss account. The trading account or the first part ascertains the gross profit and profit and loss account or the second part ascertains net profit. If the debit side is excess of credit in trading account, then this is gross loss and vice versa. The gross profit or gross loss is transferred to profit and loss account to determine the net profit or net loss. If the credit side is more than the debit side then there is net profit and vice versa. |
