If assets appear on the left-hand side of the balance sheet, then why do losses also appear on the same side?

Question

Accepted Answer

Assets and losses both appear on the left side of the balance sheet because they represent the resources owned by the company and the decrease in those resources due to expenses or liabilities.

Assets represent the resources owned by the company, such as cash, inventory, and property. They are listed on the left side of the balance sheet to show what the company owns.
Losses, on the other hand, represent a decrease in assets due to expenses or liabilities exceeding revenues. They are also listed on the left side of the balance sheet to show the reduction in resources.
The balance sheet follows the accounting equation: Assets = Liabilities + Equity. Therefore, both assets and losses are shown on the same side to maintain the balance of the equation.
For example, if a company incurs a loss from selling inventory at a lower price than its cost, the decrease in assets (inventory) will be reflected on the left side of the balance sheet as a loss.

Accepted Answer

See the figure of loss which appears alongwith assets suggests that to the extent of loss, the assets are lacking in the business.