Negative figure in Financial statement

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Negative figures can arise in financial statements due to several factors. In the Profit and Loss account, a negative figure might appear from changes in inventory (closing stock minus opening stock) or if a loss occurs. This loss can then be reflected in the 'Reserve and Surplus' section of the Balance Sheet, potentially being transferred to the capital head for private limited companies. Additionally, negative figures can occur with creditors and debtors, essentially showing them on the opposite side of their usual presentation.

Daya

Daya (Querist)
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23 December 2023 where may come nigative figure in Profit and loss account and balance sheet.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 December 2023 No negative figure in profit and loss and balance sheet.

Daya

Daya (Querist)
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23 December 2023 sir,
Changes in inventories Closing stock minus opening stock and
Loss occured in profit and loss account to shown negative figure in reserve and surplus and
may another figure may be in negative like Creditors and Debtors.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 December 2023 Negetive figure show it opposite side in case of balance sheet.
Show negative figure under creditors as debtors and negative figures under debtors under creditors.
Show negative figure under Reserves and surplus under asset side.

RAJA P M

RAJA P M (Expert)
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24 December 2023 @ Daya, If the PandL amount (loss) account under "Reserve and Surplus" then it can be transfer/account in capital head. (I assumed you ask Pvt Ltd)

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