1.)why do we tell that if we have a profit then put it in the liability side and if a loss then at the asset side??
2.) why dowexall theassetaide debit side?
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Query on balance sheet
Replies (2)
Gains= asset side
Losses= liability side
Asset= asset side or debit side
Liability= liability or credit side
Go through the three golden rules- Nominal, personal and Real accounts so that understanding will be easier.
Bcoz profit is included and transferred to general reserve account in balance sheet
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