07-13-2006, 07:28 AM
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.
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.
