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Why we treat profit and loss account balance in asset side of balance sheet?
Wiki User
∙ 11y ago
whenever net loss is done we shown assets side under head miscelenious asets to written off
Wiki User
∙ 11y ago
Wiki User
∙ 12y agoLoss is written in the assest side of a balance sheet because my nipples are aching.
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Where does overdraft go to balance sheet or profit and loss account?
Bank overdraft is shown in balance sheet either as a negative amount of bank in asset side or at liability side of balance sheet.
What are the implications of Negative General Reserve in balance sheet of a company?
It would be shown as Debit Balance of Profit & Loss Account on Asset side
Is bank account a balance sheet item or income statement?
Bank account is actual bank account and it is asset of business and like all other assets which are shown in balance sheet bank account also shown under current asset portion of balance sheet.
Where is Profit and Loss post in balance sheet?
In case of profit Liability side. In case of loss Asset side.
What type of account is asset account?
An asset account is a "balance sheet" account. That is, when financial reports are created, the balances in asset accounts are reported on the balance sheet*, together with the balances in liability accounts and shareholders' equity accounts, and not on the income statement (which reports only revenues and expenses for the period of time ending on the balance sheet date.) *Another name for the balance sheet is the Statement of Financial Position.
Where does loss appear on the balance sheet?
Loss is shown in asset side of business as other asset because it has debit balance and reverse of profit which has credit balance.
How to account for the goodwill in the financial statement?
Balance Sheet- Noon Current Asset- intangable Asset
Is Prepaid insurance expense an asset?
Yes. All prepaid items go in current assets until they are used and transferred to the profit and loss.
Why accumulated depreciation is recorded in the asset of balance sheet instead of recording in the liabilities side?
it is a contra asset (negative) hence that's why it is shown as decreasing amt on the balance sheet. In other words, the contra account of any given account is of the same type. So, the contra of a fixed-asset account is also a fixed asset account but with the opposite normal balance. That's why depreciation is in the asset section.
Where does bank go in a trading profit and loss account or balance sheet?
Well salaries payable is liability of an organization . This is a current liabilities so they are posted in capital and liability side of a balance sheet.
About projected balance sheet and profit and loss account?
how to prepare the forecast report of profit and loss account with balancesheet
Which type of account is prepaid expenses?
Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet.
