Why loss shown in as Assets in Balance Sheet?
- 3 Answers
- 10191 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
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 |
Answer / megha
Since it is a debit balance of P&L a/c it is shown in assets side.It is a type of fictitious asset. These are assets not represented by tangible possession or property.Example of fictitious assets are preliminary expenses,discount on issue of shares,debit balance in the profit&loss a/c shown on the assets side in the balance sheet.
| Is This Answer Correct ? | 5 Yes | 4 No |
Answer / p. fayaz ahamad
profit or loss it should be transferred to the liabilities side of the balance sheet and it is deducted from the capital as less net loss
| Is This Answer Correct ? | 1 Yes | 2 No |
Accounting transactions are recorded in accordance with thier legal form or substance. Briefly explain the legal form and substance of the accounting transactions and give one relevant example.
ten example of direct income
how to pass provision salary full and settlement(inclusive Bonus,Gratutity etc )please show me entry
What is PBG & ABG in term of Contract for supply?
2 Answers ITP, JDM Pharmatech, Jubilant Organosys,
IF MY SALARY IS RS.8000 P.M THEN I HOW MUCH I GET BY DEDUCTING P.F & ESI IF COMP DEDUCTS BOTH ESI & PF
6 Answers AEL, Globarena Technologies, Primaccess,
A=27, B=63 What is d % Difference between 2?
what do you mean by the word Purchase
Where to define a Payment Document
If i have started a new institution than what are the entries i have to passed in tally
dear sir,how to maintain petty cash book. its voucher and posting on cash book and ledger A/c?
how to prepare balance sheet pls tell me?
if we import purchase of $ 20000 /rs. 80. but when we payment the party the price of Rs. 50. then how we make entry of this type of purchase.
Audit 
