ChartAcc

Hint - Business and Owner are both different. Profit is liability of business towards owner thats why it comes at Liability Side and vice-versa for Loss.

Question 9A - Why Loss is treated at Asset side instead of deducting it from Owners Equity or say why it is carried forward?

Hint - Loss is right of a business to recover it from business-man but as per rules it is carried forward for deducting it from Business profit of the next year.

Recently this question was asked from a CA in the interview by a very big Indian FMCG company (name withheld).