why profit and loss account debit balance appeare in the asset side of balance sheet?
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Answer / amalraj
According to the balance sheet all debit balance should be appeared in assets side and all credit balance will appeared in liability side of the balance sheet.
| Is This Answer Correct ? | 85 Yes | 18 No |
Answer / sivaram
debit all expences and losees credit all incomes and gains so
loss is debit so asset balance is debit so we should show in
asset side in the balance shet
| Is This Answer Correct ? | 18 Yes | 8 No |
Answer / parth pp ca final
P and l dr bal is shown as fictitious asset and amortised over period of time it is loss which owner will bring so it is asset receivable from owner
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / varma
There is a concept known as normal balances. The normal balance is the correct way to INCREASE the account.
Remember: Assets(Debit Balance) = Liabilities + O.E. (Credit Balance)
To Increase/Normal Balances
Assets - Debit
Expenses - Debit
Revenue/Income - Credit
Liabilities - Credit
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / vinod kumar s
credit is what to be invested and debit is the debt taken as
loan from any bank so the liability side is for debit not
for credit
| Is This Answer Correct ? | 19 Yes | 20 No |
Answer / siddu
profit is source of fund and loss is application of fund. therefore, we should shown loss on asset side of Balance sheet
| Is This Answer Correct ? | 1 Yes | 3 No |
Answer / farooq abdul
because profit and loss debit balance means net profit,that
is assets, assets shown in the debit side of the balance sheet
| Is This Answer Correct ? | 4 Yes | 13 No |
Answer / prasad m deshmukh
because debit balance means profit.and it show in asset side
| Is This Answer Correct ? | 2 Yes | 15 No |
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