In converting single entry to final account, the balancing figures on the income and expenses accounts are transferred to the?

Answer Details

In converting single entry to final account, the balancing figures on the income and expenses accounts are transferred to the profit and loss account. The profit and loss account is used to determine the net profit or loss of a business for a particular period. All the expenses and losses are deducted from the total revenue earned during the period, and the resulting figure is the net profit or loss. Therefore, the balancing figures on the income and expenses accounts, which represent the total revenue earned and total expenses incurred during the period, respectively, are transferred to the profit and loss account to determine the net profit or loss of the business.