Actully there are menny types of methods.
The debit balance of the P&L A/c it means loss there are
two way to show the loss to the balance sheet.
1) Deducte from Capital
2) show to the Asset side of the Balance Sheet
in the liabilities side:- Show here the debit balance of
profit and loss account carried forward after deduction of
the uncommitted reserves, if any
in the Assets side:- Other Reserves specifying the nature
of each Reserve and the amount in respect thereof Less:
Debit balance in profit and loss account
(The debit balance in the Profit and Loss Account shall be
shown as a deduction from the uncommitted reserves)
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!
The credit balance of P& L means the excess of revenue
minus overheads.If so the balance will be placed under
Liabilities side.The question is Debit balance of P & L.It
is excess of overheads over revenue called as loss.It will
be placed under assets side
i am working in part time job in welding institute in that
some expenses will come cylinder and scrap material and rods
w (welding) these all are direct expense or indirect
expenses , please explain