Interested to Buy Any Domain ? << Click Here >> for more details...
THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN
OF BALANCE SHEET
- 59 Answers
- 86435 Views
- Capital IQ, College School Exams Tests, Renault, State Bank Of India SBI, WS, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / manish.p
The debit balance in P&L A/c represents Loss which is shown
om the asset side of Balance Sheet as a separate line item
as per the requirements of Schedule VI of Companies
Act,1956.This is because it is a fictitious asset.However
if the company has adequate surplus then it should be set-
off against it and only the net balance of Reserves shown
on Liabilities side.
| Is This Answer Correct ? | 72 Yes | 14 No |
Answer / swathy
Hey teja, it comes in Liabilities side which is added to
the reserves and surplus. The logic that debit balance in
p&l a/c being netprofit, hence in assets side is wrong.
The debit balance of P&L a/c i.e., netprofit comes to
balance sheet added to the reserves.
| Is This Answer Correct ? | 117 Yes | 61 No |
Answer / sagar
the right answer is debit balance of the p&l a/c is shown as
"ASSET" in the balance sheet.
| Is This Answer Correct ? | 21 Yes | 6 No |
Answer / sagnik das
DEBIT BALACE OF P/L A/C MEANS : IN P/L A/C, DEBIT SIDE IS
HEAVIER THAN CREDIT SIDE.AS-DEBIT SIDE REPRESENTS THE
EXPENSES AND CREDIT SIDE REPRESENTS THE INCOMES,THEN IN
THIS SITUATION EXPENSES IS HEAVIER THAN INCOME.AND THIS IS
ABSOLUTELY CALLED AS LOSS.
AND THIS LOSS IS POSTED IN THE ASSET SIDE OF THE BALANCE
SHEET.
(REMEMBER: PROFIT IS A LIABILITY TO BUSINESS.AS IT IS TO BE
RETURNED TO SHARE HOLDERS.IN "BUSINESS ENTITY CONCEPT" IF A
BUSINESS OWES SHARE HOLDERS FOR PROFIT AS SHARE HOLDERS ARE
TREATED AS OUTSIDE AND SEPARATE ENTITY OF BUSINESS.
IN VIS A VIS LOSS IS TREATED AS ASSET.AND IT IS SHOWN IN
THE ASSET COLUMN OF THE BALANCE SHEET.)
| Is This Answer Correct ? | 15 Yes | 1 No |
Answer / padmakar
It is expenditure over than income because of it should be
shown in assets side. Other wise that losse shoud be
decrese from capital. Income over than expenditure it shoud
be showne in reserve and surpless.
| Is This Answer Correct ? | 14 Yes | 1 No |
Answer / eldose
As per the schedule VI the debit balance of P & L should be
shown in the assets side
| Is This Answer Correct ? | 17 Yes | 5 No |
Answer / sai bhaskar reddy.bandi
the debit balnce of profit&loss account indicates net
loss , hence it can be shown at assets side of balance
sheet under miscellaneous expenses.
| Is This Answer Correct ? | 14 Yes | 2 No |
Answer / manish goyal
The Debit balance of P&l comes in assets side of Balance
sheet. Debit Balance means expenses over the incoes (i.e.
loss).Loss is shown in Assets side of Balance sheet
| Is This Answer Correct ? | 20 Yes | 12 No |
Answer / hemanth kumar
Hi Kirti, don't get confused, understand the question
clearly. Here P/L debit side means expenditure, since the
question clearly say's that debit side is more, that means
to say that expenditure is more. In other words it is net
loss. Hence it goes to balance sheet asset side.
| Is This Answer Correct ? | 8 Yes | 0 No |
Does Operating Cost include Taxes - Direct or Indirect?
What is meant by Repo Rate and Reverse Repo Rate.
28 Answers Andhra Bank, Capital IQ, Idbi Bank, Search Enterprises, State Bank Of India SBI, WNS,
What is the difference between input vat & out put vat?
How can i do the entry of of service tax in tally.
What is the Formula of debt equity ratio? Also Define its importance in accountancy.
what are types of cost? categorise these cost specially those which are relates to financial managment. and which cost should be consider during management.
What is DECR And for wt it is used?
WHAT IS THE JOURNAL ENTRY FOR PURCHASE RETURNS IN THE BOOKS OF PURCHASER & SELLER
Please share different type of Z report
Please explain Undistributed Profits?
What is treasury bills
Nature of training account with reason
Audit 
