Why is loss posted on assets side?

Akshay Dwivedi (Student CA IPC / IPCC) (74 Points)

28 January 2015  

Is the 'Net Loss' from the P&L Account transferred to 'Miscellaneous Expenditure' in Assets side or only accumulated losses are transferred there?

What is the logic behind doing this? I read some places where it is said that this is done due to 'seperate entity' of a company but I wasn't able to understand... Can someone please explain in detail?