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The Loss of Profit & Loss A/C Where It is Shown in Balance
Sheet Liability or Assets Why ?
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Answer Posted / ca sanjay agrawal
The loss of profit & loss account are being shown under
Assets side of Balance Sheet. This is because, when the
entity will come in profit, it will be recoverable from the
profit of the Profit & Loss Account. Its nature is
recoverable thats why it is shown as assets of the entity.
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