What is meant by P&L Dr balance. Can u explain expandedly? Normal profit will have what balance either debit or credit?
Debit blnce Â in theÂ PL means Â a company is inÂ LOSS. This in turn reduces the retained earnings and it is accounted for in the capitalÂ account Â of a company.
PROFIT will have cr balance in PL
Profit & loss account includes both profits and losses, if the net effect is profit then its credit balance, if the net effect is loss then P&L a/c is a debit balance.
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