Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

The unfavorable balance of Profit & Loss account should be: A)Subtracted from current assets B)Subtracted from capital C)Subtracted from liabilities

Financial Accounting
user-image
Question added by Adnan Mustafa , Credit Controller , National Refreshment Company LLC
Date Posted: 2013/06/15
Upvote (3) Views (21) Followers (2) Answers (3) Report Question
Write an Answer
Register now or log in to answer.
SALIK RAFIQUE
by SALIK RAFIQUE , GM FINANCE , SWISS PRO MANUFACTURING CO.

The Unfavourable balance of the P/L account should be deducted from the capital.

Kripesh Krishnan Kutty Nair
by Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group

It is the owners responsibility to bear a loss happens like the sharing of profit, owners equity to the business is called capital, so the unfavorable balance of P&L account must be deducted from Capital

Zeeshan Ali Soofi
by Zeeshan Ali Soofi , Accountant , Al Mona Auto Repair Workshop LLC

B) Subtracted from capital.

Write Your Answer
More Questions Like This