Expenditure over Income

Page no : 2

sabyasachi mukherjee (26219 Points)
Replied 05 October 2023

A VAGUE QUERRY.

Yasaswi Gomes new (Finance ) (4487 Points)
Replied 05 October 2023

Isnt it true that eg. A balance sheet is always balanced from last year. The dual aspect of it suggests that if expenses are more, bank will deplete equally to the amount of losses. If you makeit an asset, wont an asset liability mismatch occur?

sabyasachi mukherjee (26219 Points)
Replied 06 October 2023

Balance sheet is a format of financial information which gives correct replica of financial asset and liabilities .

RAJA P M ("Do the Right Thing...!!!") (127406 Points)
Replied 06 October 2023

Originally posted by : ACCOUNTANT
	Originally posted by : RAJA P M Yes, You are exactly correct and I agreed the above said golden rules and All. But, The query is Why is the difference between expenditure over Income shown on the asset side of balance sheet. Querist asked why it's shown asset side.. Since, I am also asking to you all "Why it's shown in asset side...??? Is there any difference if it's company or other than company...?? Is may be shown any other side except Asstt/Liabilities...??? Sir As you gave an explanation from Schedule III of Companies Act, Deferred Expenses and Debit balance of P&L will be shown on asset side because to satisfy Matching Concept of Basic Concepts of Accounting,I.e., since all expenses are debited they are shown on Dr. side of Balance Sheet. Expenditure over Income ultimately recognises Expenditure and which matches with third rule coming to debit side. Please correct me if I am wrong.

Dude.,

It's very simple...

The query is not about the Schedule III (Company) or Other than Company... Right...?

The Query wrongly converted into above as Company's BS & It's Loss/Dificit... Right...?

Also, Still I'm not disagree/against to all the above replies about Sch III... Right...?

The Query is :

(Why is the difference between expenditure over Income shown on the asset side of balance sheet)

--> We can simply reply "The Books of Accounts is under Loss" or "May be wrong entries" or "May be it became Depreciation loss" or "Any other possibilities"

These all can be possible in Schedule III BS & PandL and Other than Schedule III BS & PandL

Again I will say the Query and the Argument not same...