Examveda
Examveda

The unfavorable balance of Profit and Loss account should be

A. Added to liabilities

B. Subtracted from current assets

C. Subtracted from capital

D. Subtracted from liabilities

Answer: Option C

Solution(By Examveda Team)

Loss is subtracted from capital account and profit is added to capital account.

Join The Discussion

Comments ( 1 )

  1. Ashwini Dhanva
    Ashwini Dhanva :
    4 years ago

    The unfavorable balance of Profit and Loss account should be
    C. Subtracted from capital
    Why

Related Questions on Accounting