Interested to Buy Any Domain ? << Click Here >> for more details...
why the debit balane of p&l a/c shows in asset side of
balancesheet
- 6 Answers
- 23275 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / bhupinder s
it is because
debit bal of P&L shows loss
profit in liability shows tht company is liable to pay the profit amt to shareholders
and
P&L(loss) in asset side shows that shareholders are liable to pay the company
refer: company and shareholders are diff entities
| Is This Answer Correct ? | 51 Yes | 7 No |
Answer / mahak
Because all assets contain Debit balances as per the
REAL RULE OF ACCOUNTING:
WAT COMES IN IS DEBIT
WAT GOES OUT IS CREDIT
| Is This Answer Correct ? | 48 Yes | 15 No |
Answer / gupta
Profit and loss account nature is Nominal Account.As per
Nominal account rule we have to debit all expenses and
losses and we have to credit all incomes and gains.Therefore
loss is a outcum of Profit and loss account i.e. its nature
is Nominal account.Therefore it will have debit Balance and
all debit balances will go Assets side of balancesheet.
| Is This Answer Correct ? | 14 Yes | 5 No |
Answer / bharadwaj
P&L debit balance means loss.
Why loss shown on assets side???
Ans always will be write off in future which means future
profit retained with company in the name of write off.
unless write off the profit is to be given to share holder,
as the profit is not given to share holders and retained n
future profits, P&l debit balance is treated as Asset
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / faruk.id
P&L A/c debit balance means oever exp. on income , as per
nominal rule expenses is debit so it is recorded unsder
asset side in balance sheet
| Is This Answer Correct ? | 2 Yes | 4 No |
WHERE ARE ISSUE H FORM
Difference between a pay-order and draft?
Explain kinds of accounts
if average inventories is 12000. closing stock is 3000 more than opening stock. then what's is the closing stock?
Expand--------SOT
formula for profit margin
what is buy back of share & why a company go for it?
Please send me full details of MIS report how to prepare which item to be consider in MIS report? 2) full details of Esic, PF and Fbt and maharashtra labour welfare fund
why is nifty lower than sensex?
Hello Frd's This is Mohd NaseerUddin. Is Anyone can help me out to findout a Accounting Peachtree 7.2 note's aswel as Focus notes also Plsssssss helpme out to find it. My E-mail id is mohd_naseeruddin43@yahoo.com
what do u mean by audit?
what are all the formulas used in bank to calculate their economy
Audit 
