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
- 23490 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 |
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
MAY I PREPARE TAX INVOICE FROM MFG UNIT TO RETAILER DIRECTLY?
Liabilities: 2006 2007 Assets 2006 2007 Trade Creditiors 100 40 Cash atBank 100 65 Bills Payable 50 60 Account/R 105 120 Outstanding Expenses 25 20 B/R 130 140 Bonds Payable 220 140 Inventory 110 40 Accumulated Depreciation: Machinery 120 160 -on Machinery 30 35 Building 300 310 -On Building 75 85 Land 60 130 Reserves 100 115 Patents 55 60 Retained Earning 130 170 share Capital 250 360 Profit from operation after providing Rs.10,000as depreciation on building and Rs.10,000 on machinery and Rs.5,000 as amortization on patents for the year 'April 06- March07' was Rs.35,000. Other revenues for the year were Rs.40,000. An old machine with original cost of Rs.15,000 was sold at a loss of rs.5,000. Prepare Fund Flow Statment and Cash Flow Statment for the year ending March 31 2007 based on the information given above.
The following suggestions are under consideration: (a) 10% reduction in price to yield an increase in sales volume from 6600 to 7400 units. Current unit price Rs. 1,000 Unit variable cost Rs. 500 Fixed cost Rs. 30,00,000 Prepare a statement comparing gross revenue, profit, contribution and P/V ratio of the two alternatives with present results. Which suggestion would you recommend?
WHAT ARE LIMITATIONS OF ACCOUNTS ?
What is meant for GR form, which is used in export of goods without of payment of duty ? For what purpose we use it ? Should merchandise exporter use it ?
Are you sure MBA Finance Demand in market if yes why and if you study a distance couse so my question is destance education is a valed for big company and small company
what is the difference between Assets Allocation & Security selection?
What is called Take Over?
How will be prepare invoice in tally, please tell me step by step
EXPAND______________ICT
Why closing stock wont appear in the Trial Balance?
Audit 
