Question

Profit and Loss Account appearing on the asset side of a balance sheet. Answer in a word / phrase / term.

Answer 1

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⏩ Accumulated profit

Answer 2

Explanation:

The profit or net income is owned by a sole proprietorship proprietor or by a corporation's shareholders. When a business prepares its balance sheet in the account form, the assets are shown on the left or debit side.

A loss is always a debit balance because you have more expenditure (debits) than income (credits). However, if there are no capital assets, which means that cumulative losses exceed the capital reserve, the debit balance will be shown on the asset side of the  P&L account.