It is expenditure over than income because of it should be
shown in assets side. Other wise that losse shoud be
decrese from capital. Income over than expenditure it shoud
be showne in reserve and surpless.
THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IT CALLED AS THE
REVENUE EXPENDITURE AND THE SAME WILL BE SHOWN IN THE
ASSETS SIDE OF THE BALANCE SHEET IT WILL BE TREATED AS
REVENUE RECEIPT's. so in this the debit balance of the p&l
a/c is shown in the balance shee that is in assets side.
THIS IS NOT MY OWN ANSWER THIS AS PER INDIAN GAAP EVERY
ONE CAN SEARCH IT!
If one person has been paid excess salary in particular
month. In next month we want to deduct the excess given in
last month what will be the entry,
Assume: excess given 2227
This month details : Gross 20058, PF 780, PT 200, and net
must be 16851
all effective figures must consider in entry