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Form of balancesheet

deepak (pa) (30 Points)

08 June 2011

Why do you write Asset on left hand side and Liability on right hand side?

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15 Replies

tarun (CA Final (Gr. 2 Passed) & CS Final) (332 Points)
Replied 08 June 2011

why trees are green why not red ?

1 Like

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tarun (CA Final (Gr. 2 Passed) & CS Final) (332 Points)
Replied 08 June 2011

nothing but convention or that is just like why girls are she and boys are he

2 Like

tarun (CA Final (Gr. 2 Passed) & CS Final) (332 Points)
Replied 08 June 2011

having a convention reduces the chances of misunderstandings and bring uniformity.

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(Guest)

tree gives us fressness so trees is green

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 08 June 2011

Originally posted by : Tarun
	why trees are green why not red ?

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tarun (CA Final (Gr. 2 Passed) & CS Final) (332 Points)
Replied 08 June 2011

Originally posted by : Robin
	tree gives us fressness so trees is green

that means everything that is green should give freshness..

i dont think so.

Anit Sharma (CA Final student ) (460 Points)
Replied 08 June 2011

Originally posted by : Tarun
	why trees are green why not red ?

arpit (article) (25 Points)
Replied 08 June 2011

bhai tere ko ladka hi kyo kahte h ladki kyo ni.................

Kiran (CWA) (75 Points)
Replied 08 June 2011

Question it self wrong..

Assets will be shown on Right side & Laibilities will be on left side..

Any question?

Manish Sharma (Profession) (193 Points)
Replied 08 June 2011

Balance Sheet is just a Presentation of Closing Balances of Ledger Accounts. All Credit Side Balancing figures (Left Hand side) are shown on Liabilities side (Left Hand side) and all Debit side Balancing figures (Right Hand side) are shown on Assets Side (Right Hand Side).

Thanks.

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rahul (Chartered Accountant) (5572 Points)
Replied 08 June 2011

Originally posted by : Kiran
	Question it self wrong.. Assets will be shown on Right side & Laibilities will be on left side.. Any question?

rahul (Chartered Accountant) (5572 Points)
Replied 08 June 2011

Originally posted by : Robin
	tree gives us fressness so trees is green

sanjeev (AM) (38 Points)
Replied 09 June 2011

Originally posted by : manish
	Balance Sheet is just a Presentation of Closing Balances of Ledger Accounts. All Credit Side Balancing figures (Left Hand side) are shown on Liabilities side (Left Hand side) and all Debit side Balancing figures (Right Hand side) are shown on Assets Side (Right Hand Side). Thanks.

obviously, the question is intended to find a logical or most logical explanation for such convention and not answers stating that since we cannot explain why trees go up so we cannot explain this convention as well.

hence, i feel the above quoted explanation seems to be most reasonable.

p.s. why in the USA they use opposite format of writing liabilities on right hand side and assets on left hand side ??

Any thoughts on this manish ?

Raj (Assistant) (56 Points)
Replied 14 June 2011

We can easily grab the things with our poweful right hand and escape - so the things like land/building/plant/machinery/debtors/bank/cash ets; are right side

Our Left hand always weak - we don't like to give money to creditors/ we hate to pay our loans

If you are a lefthanded person you can make the asset left side of B/s...np