In my balance sheet the Profit shows in asset side of Balance Sheet. Why this happen? my firm is not in loss then why it shows asset side. While i am entered right entry of transfer of P&L o capital.
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Why profit shows in asset side of balance sheet?
Replies (13)
There is only one situation for P&L account under Asset side (Loss) of the Balance sheet.
If Profit & Loss shown in Asset side then Your firm is in Loss.
In case Your Firm not fall under Loss then check Your accounting Entries & Also check Your PandL account...
In case Your Firm not fall under Loss then check Your accounting Entries & Also check Your PandL account...
if p&l acc appears in assets side of balance sheet then it is debit balance(i.e loss).
check you P&L entries you may post on wrong entries
In the case above it Profit and loss account is shown in Balance sheet of your firm where it indicates your loss balance transferred from profit and loss account.
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the site has no relevance to this query
by the way nice M.😉
by the way nice M.😉
In case credit balance of profit and Loss accounts then that credit balance of P&L is transferred in assets side of balance sheet because it is the Loss.
Tally pl has two views. Check if balance sheet has two views.
What software do you use sir? If its tally change the view settings to vertical. Youll get COS mathematics
I dont like the slang verticacal, horizontal, top down and bottom up approsches. Its not accounting!!
But how do you know your future operating profits and losses when not even provisions standard is willing to?
According to my point of view you should have to check your last year pnl transfeered entry.
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