What is a deficiency account?
submitted by kalpana

Arnold

Usually, an account with a negative balance when a positive balance is expected.

Arnold

Usually, an account with a negative balance when a positive balance is expected.

Arnold

Usually, an account with a negative balance when a positive balance is expected.

Ehsan awan

Deficiency is a type of bank rupt and cover the money of deficit balance

Baba Younis

The Deficiency account explains the reason for a deficiency. On the left hand side of this A/C, a capital + all item that increase capital are put. While on right hand side, losses, withdrawals and also such item which decrease capital are put. In case of an individual any excess of private assets over private liabilitiea will be shown on left hand side and deficiency on these items will shown on right hand side. The excess of right hand side over the left hand side is the deficiency . This account must agree with the figure appearing in the statement of affairs.

Vera

This is the account which sets out in detail, items contributing to the deficiency commencing with the excess (if any) of capital and liabilities over assets. From the total of these items, Is deducted the total of all items reducing the deficiency, the balance will represent the deficiency disclosed in the statement of affairs.