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Question
The closing balance of this Account shows surplus or deficit for the year.
Options
Receipts and Payments Account
Income and Expenditure Account
Balance Sheet
None of these
Solution
Income and Expenditure Account
Explanation:
The closing balance of this Account shows surplus or deficit for the year. If the credit side exceeds the debit side, there is surplus. On the other hand, if the debit side exceeds the credit side, there is deficit.
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