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JAMB Principles of Accounts 2004 Question 30

Question 30

Not-for-Profit Organisations

Where the debit side of the income and expenditure account is higher than the credit side, the difference is a

  1. A.deficit
  2. B.surplus
  3. C.gain
  4. D.loss
Show the answer and explanation

Answer: A (deficit)

Explanation

More expenditure (debit) than income (credit) gives a deficit; a non-profit body says surplus or deficit, not profit or loss.