Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / maruthimuralidharan
AS per Business entity assumption owner and his business are consider to be two different persons.
Asset means anything which will do favour to the business in future. in the same manner liability means anything which will do unfavour to the business in future.
If the business is in the position of Loss means it is the duty of the owner to compensate it. it will do favour to the business in future so Loss is shown under the asset side of the balance sheet.
if the business is in the position of profit means it is the duty of the company to give the return on capital. it will do unfavour to the company so profit is shown under the liability side of the balance sheet.
| Is This Answer Correct ? | 10 Yes | 0 No |
Post New Answer View All Answers
How can you define departmental accounting?
What does the word credit mean in terms of accounting?
My Brother is running a small business of Window glasses & Mirror etc. He needs Bank Loan (CC/OD Limit)against current account. So, I need a project report to apply CC Limit. Please Help me. My EMAIL ID is :- savichawla_1703@yahoo.co.in Kindly send the report to above ID ASAP. Thanks & Warm Regards Sarvpreet +919888669523
Tell me about an invoice discrepancy you discovered and how you resolved it
How much statistics knowledge is necessary or required in accounting?
What are the items that are to be debited in accounting and what are the items that are to be credited in accounting?
Tell me what are the three factors that can affect your cash flow and business profitability?
what is service tax & excise? How will it be charged?
How to create a liability for Service Tax in SAP
what is valuation code and valuation modifier in sap fico
explain me what steps would you take to increase revenue for this company?
What we have to post entry for payroll processing ? (Indian payroll)
How to make privision in SAP. (Please revert on the possibility of making this happen at PO Stage)
What is full rate on plywood box in haryana sale tax:
hi i want to run vendor debit memo after he paid all amount i want to give discount through miro i am giving the price and quantity and run in through miro the system will pass another two more line iteams extra and shwoing dr/cr balance +/- when i will increase the amount this is also increasing what is the reason i dont know please send me immediately
