If the sum of the debit side is lesser than the sum of the credit side
A. Debit Balance
B. Credit Balance
C. Zero Balance
D. Bank Overdraft
Right Answer is: B
The income statement of an organisation shows the profits or losses at the end of an accounting period or fiscal year.
• If the debit balance is higher than the credit balance on the income statement, the debit minus the credit represents a loss and is called debit balance.
• If the credit balance is higher than the debit balance on the income statement, the credit minus the debit represents a profit and is called credit balance.