Interview Q9 - I am a Layman. I am a proprietor. Tell me why Profit is treated at Liability side and Loss is treated at Asset side of Balance Sheet?
Saturday, August 23, 2008Hint - Business and Owner are both different. Profit is liability of business towards owner thats why it comes at Liability Side and vice-versa for Loss.
Question 9A - Why Loss is treated at Asset side instead of deducting it from Owners Equity or say why it is carried forward?
Hint - Loss is right of a business to recover it from business-man but as per rules it is carried forward for deducting it from Business profit of the next year.
Recently this question was asked from a CA in the interview by a very big Indian FMCG company (name withheld).
Novel by a Chartered Accountant
A novel by Vikrmn (CA Vikram Verma) a saga of 10 friends.. 10 Dreams.. 10 hearts.. 10 Minds.. It's a story of 10 Chartered Accountants.. who celebrate personal and professional life.. all together.. Ten Together.. |
