Can sources of or application of fund can be negative?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 cumulative loss is greater then loan+ capital so sources of fund is negative.net current assets is negative and which is more then fixed assets so application of fund is also negative.
CAN WE SHOW THE NEGATIVE FIGURE IN SOURCES OF FUND AND APPLICATION OF FUND IN THE AUDITED BALANCE SHEET.

CA Sumat Singhal

CA Sumat Singhal (Expert)
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23 September 2011 Yes, It can be shown, even revised schedule VI contain such matter specifically where debit balance of P&L account should be shown under EQUITY AND LIABILITY as negative balance.
Regards,
CS SUMAT SINGHAL

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 well it is never possible as you all are confused in the middle of the amendment in new schedule vi, in which you are picking one old provision and one new provion

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 as per old schedule vi
the loss r reqd to be shown on asset side and the current liabilities r to be shown as deducted from current asset, therefore both current liabilies and profit and loss a/c -loss figure will set off each other

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 moreover in case of new schedule vi current liabiliteis are now shown as positve figure on Source side and loss amount to be deducted from Capital & reserve again both will set off each other

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 and no case it can be negative at maximum it can be Nil balance both the side not beyond that is permissble at any cost