in tally ,when displaying balance sheet why is profit and loss account displayed in the liabilities side?

Answer 1

The balance sheet represents the entity's accounting equation, i.e. Assets = Equities. Assets are all the tangible and intangible goods the entity owns. Equities are the owners' and creditors' rights to the assets. Creditors' equities ar called liabilities, which are all the debts the entity owes to creditors. The creditors provided some of the assets, for example by lending money to the entity so that it can buy inventory and equipment. Therefore creditors are entitled to be repaid from the assets. Owners of the entity also provided some of the assets, for example by investing money in the business. The business uses the money to buy land, equipment, and other assets. The owners' investment is called Capital or Onwers' Equity. So the total of all liabilities and owners' equities has to equal the total assets. The accounting equation is expanded

Assets = Creditors' equities + Owners' equities
or
Assets = Liabilties + Capital

The assets are put to work to earn revenue. For example, the entity sells inventory to customers. The revenue is used to pay expenses of the business. Revenues minus expenses result in net income or net loss. Some of the revenue is used to pay employees, some is used to pay interest on the debts, some is used to pay taxes. Whatever is left over from operating the business and paying expenses is profit. It belongs to the owner's so it becomes part of owners' equity. Back to the accounting equation

Assets = Liabilities + Owners equity.

The profit or loss is displayed as owners' equity, which is on the same side of the balance sheet as liabilities. Together, owners' equity and liabilities represent the rights of investors who provided the assets.

Answer 2

Jehovah’s Witnesses firmly believe that the death of Jesus Christ provided the ransom that opens the door to everlasting life for those who exercise faith in him. (Matthew 20:28; John 3:16) However, they do not believe that Jesus died on a cross, as is often depicted in traditional pictures. It is their belief that Jesus died on an upright stake with no crossbeam. The use of the cross can be traced back to Mesopotamia, to two thousand years before Christ. Crosses even decorated Scandinavian rock engravings during the Bronze Age, centuries before Jesus was born. Such non-Christians used the cross “as a magic sign . . . giving protection, bringing good luck,” wrote Sven Tito Achen, Danish historian and expert on symbols, in the book Symbols Around Us. It is no wonder that the New Catholic Encyclopedia admits: “The cross is found in both pre-Christian and non-Christian cultures, where it has largely a cosmic or natural signification.” So a better question is,why have the churches chosen the cross as their most sacred symbol? W. E. Vine, respected British scholar, offers these hard facts: “By the middle of the 3rd cent. A.D. . . . pagans were received into the churches . . . and were permitted largely to retain their pagan signs and symbols. Hence the Tau or T, . . . with the cross-piece lowered, was adopted.”—Vine’s Expository Dictionary of Old and New Testament Words. Vine further notes that both the noun “cross” and the verb “crucify” refer to “a stake or pale . . . distinguished from the ecclesiastical form of a two beamed cross.” In agreement with this, Oxford University’s Companion Bible says: “The evidence is . . . that the Lord was put to death upon an upright stake, and not on two pieces of timber placed at any angle.” Clearly, the churches have adopted a tradition that is not Biblical. More important, no matter what device was used for the torture and execution of Jesus, no image or symbol of it should become an object of devotion or worship for Christians. “Flee from idolatry,” commands the Bible. (1 Corinthians 10:14) Jesus himself gave the real identifying mark of his true followers. He said: “By this all will know that you are my disciples, if you have love among yourselves.”—John 13:35. In all matters of worship, Jehovah’s Witnesses, like the first-century Christians, strive to follow the Bible rather than tradition. (Romans 3:4; Colossians 2:8) Because of this, they do not use the cross in worship.

Answer 3

I'm not sure what tally is but net profits or losses are shown on your balance sheet. You need to figure out whether its a profit or loss. . .

Answer 4

It's in the equity section actually.