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+--- Thread: Does balance sheet has a debit side? (/thread-does-balance-sheet-has-a-debit-side)
Does balance sheet has a debit side? - Ahmad Khan - 07-13-2006
Hi everyone, I am new at this forum.
The question I want to ask is does balance sheet has a debit and credit side. I know that balance sheet is not a ledger. What I have come across, ppl often call the asset side of balance sheet as debit side and liability side as credit side, even when liabilities are normally on the right side.
- Abdur.Rehman - 07-13-2006
Balance sheet is one of the components of financial statements. and the financial statements are presented as per the requirements of the IFRS and other applicable laws. Presentation is as per the standards and not as per the debit side or credit side.
And there are two types of balance sheet. one is statement format and the other like T-account format.
i think u r asking about the T-account format. There is no specific debit or credit side in it. It is just a presentation as per conventions.
The provision for doubtful debts is shown as a deduction from debts. and loss is deducted from equity. So, both give evidence that there is no debit or credit side. So, just a presentation as per conventions.
- Schuaeb - 07-14-2006
Balance sheet is never the part of the double entry system, PL Ac is. However, many times or atleast some times I have seen even professional people reffering the Asset side as Debit side and Liability side as Credit side. Atleast according to my opinion they can't be called Dr or Cr sides
- nabeelanwer - 07-16-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Ahmad Khan</i>
<br />Hi everyone, I am new at this forum.
The question I want to ask is does balance sheet has a debit and credit side. I know that balance sheet is not a ledger. What I have come across, ppl often call the asset side of balance sheet as debit side and liability side as credit side, even when liabilities are normally on the right side.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
IAS 1 will help you in this regard!