Cash stolen comes under which category in profit ior loss statement?
What you need to learn is to understand the basics of accounting. Lets see what cash stolen means. Usually cash is a debit balance on the face of the balance sheet. If a cash is stolen, what effect does it give? As cash got reduced its the opposite of debit, i.e. well give credit effect. But in double entry book keeping, we also have to provide a second entry, i.e. its a double entry, one entry happened in the cash i.e. credit effect, now the second entry happen in debit. Where will you debit this amount? Now here is where you put to use you accounting knowledge. Because there are many possibilities here and every possibility has different approach but the same net effect. Cash stolen onetime, and a small amount. Debit in an expense account. This will show-up on P&L. Cash stolen onetime, and a huge amount. Debit it from Reserves and Surpluses A/c. This wont show up on P&L. Cash stealing in quite frequent, and small amount. Debit in an expense account. This will show-up on P&L. Cash stealing is frequent, and a huge amount. Debit it from Provisions. This wont show up on P&L. If a General Provision is created, debit the amount from there. This wont show up on P&L. There can be more scenarios, like insurance etc. Depending on what the scenario is, it may or may not show-up on P&L.