MP Board · Class 11 · Accountancy · Financial Statements - IThe excess of credit side over debit side in a Profit and Loss Account indicates:
Step-by-Step Solution
When the total of the credit side of the Profit and Loss Account exceeds the total of the debit side, it represents Net Profit.
Detailed Options Breakdown
Option : Gross Profit
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 1: Net Profit (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Net Loss
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 3: Gross Loss
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - I. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - I Revision Notes.