Profit and loss

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66 Points Posted on 16 January 2020
why profit and loss debit balance shown in asset side of balance sheet?
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On 16 January 2020 at 18:25 Report
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Quick Summary
A debit balance in Profit and Loss (P&L) indicates a loss, meaning expenses exceed revenue for a given period. This deficit is typically shown on the asset side of the balance sheet. It can be treated as a fictitious asset or presented as a negative balance on the liability side.

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"Do the Right Thing...!!!"
128157 Points Posted on 16 January 2020
If PandL amount shown in debit side of balance sheet then that's fall in Loss...
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On 16 January 2020 at 19:09
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Student
1511 Points Posted on 16 January 2020
Loss is always a debit balance because you have more expenses than revenue.
It is a deficit for that period, so we show as fictitious asset or we can show it as a negative balance in liability side
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On 16 January 2020 at 20:43

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