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Why profit shows in asset side of balance sheet?

21 February 2019

In my balance sheet the Profit shows in asset side of Balance Sheet. Why this happen? my firm is not in loss then why it shows asset side. While i am entered right entry of transfer of P&L o capital.

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12 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 21 February 2019

There is only one situation for P&L account under Asset side (Loss) of the Balance sheet.

RAJA P M ("Do the Right Thing...!!!") (127171 Points)
Replied 21 February 2019

If Profit & Loss shown in Asset side then Your firm is in Loss.

In case Your Firm not fall under Loss then check Your accounting Entries & Also check Your PandL account...

1 Like

Narendra Varma (30 Points)
Replied 21 February 2019

if p&l acc appears in assets side of balance sheet then it is debit balance(i.e loss).

Kathiravan Shanmugam (6 Points)
Replied 21 February 2019

check you P&L entries you may post on wrong entries

Priya Kashyap (Student) (7048 Points)
Replied 24 February 2019

In the case above it Profit and loss account is shown in Balance sheet of your firm where it indicates your loss balance transferred from profit and loss account.
😮

Jonathan Norman (2 Points)
Replied 25 February 2019

When I worked as an accountant, I made a lot of mistakes because of my inattention, I always did not converge the balance, I had to stay at work and from this I was constantly tired. I read an article about how the level of attention is affected by the level of humidity in the room and decided to check how things are with it in my office. Turns out my problem was in the air, maybe yours was, too? Just in case, I'll leave the site where I ordered the meter, I hope it will be useful.

Priya Kashyap (Student) (7048 Points)
Replied 25 February 2019

the site has no relevance to this query
by the way nice M.😉

neeraj Jha (2 Points)
Replied 26 September 2023

In case credit balance of profit and Loss accounts then that credit balance of P&L is transferred in assets side of balance sheet because it is the Loss.