The unfavorable balance of Profit and Loss account should be Options: A . &nbspAdded to liabilities B . &nbspSubtracted from current assets C . &nbspSubtracted from capital D . &nbspSubtracted from liabilities

The unfavorable balance of Profit and Loss account should be

Question

The unfavorable balance of Profit and Loss account should be

Options:

A . Added to liabilities

B . Subtracted from current assets

C . Subtracted from capital

D . Subtracted from liabilities

Answer: Option C
Loss is subtracted from capital account and profit is added to capital account.

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