If the debit side of trading account is more than the credit side what does it signify ........

General Accounting Principles Financial statement analysis

If the debit side of trading account is more than the credit side what does it signify

Gross profit

Gross loss

Cost of goods sold

None of the above

Answer (b) Gross Loss

If the debit side is more than the credit side It means the business has suffered loss as expenses are dedited whereas revenues are credited.

Adjusted purchases = opening stock + purchases (net) – closing stock

Submit Error

Expenses are debited and not credited apparently. Please rectify

debit side (revenues)> credit side(expenses)= profit

NIHARIKA WALIA

debit side is expense & credit side is income side. if the expenses are more than the income it would lead to a loss