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What is meant by P&L Dr balance. Can u explain expandedly? Normal profit will have what balance either debit or credit?

surya prakash

CA Inter

★ 2K+

13-Jun-20 20:26

351

Answers (2)

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

Divya K

CA Inter

★ 885

15-Jun-20 07:48

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.