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
- 23380 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 |
Hi friends ineed finacial analyst interview question Pls share it
retained earnings will change over time due to what factors, retained earnings will increase.
in what form is crr kept in RBI?
Pass entry for outstanding salry for the month of March paid in the month of April
Expand-------IETF
My company's accountant use two different way to calculate Depreciation,one as per Companies Act and another rate for Income Tax calculation. Why we have to use two way to calculate it? Can we just use one way to calculate?
What are direct and indirect expenses
Expand E P F
why is TDS treated as an asset while preparing Balance sheet.
HOW I CAN PREPARE A BALANCE SHEET OF A COMPANY ?
Expand C P F
I need the diffnation of Gross profit and Net Profit, kindly brief. Thanking U.
Audit 
