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State Whether the Following Statement is True Or False. - Book Keeping and Accountancy

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Question

State whether the following statement is True or False.

Debit balance of Trading account shows gross profit.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:
 Debit balance of Trading Account shows gross loss, i.e. when the debit side of the Trading account exceeds its credit side.

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Chapter 2: Partnership Final Accounts - Exercise 4 [Page 65]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 2 Partnership Final Accounts
Exercise 4 | Q 13 | Page 65
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