Basics
This query is : Resolved
20 July 2010
Even if Debit is on left hand side and Credit is on Right hand side in ledger, then why liabilities are shown on left hand side and assets are shown on right hand side in the balance sheet???
Answer my query?
Answer my query?
20 July 2010
Liabilities' side of balance sheet deals with how the funds are raised whereas the assets' side of balance sheet deals with how the funds are invested. Firstly the funds are raised (by incurring liabilities) after which they are invested (asset formation). Left-to-right is a general way of reading/writing, hence the liabilities side would appear before assets.
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