u said when the firm incurs any losses it appers on the asset side of balance sheet. y is it so losses r not assets of firm then y it is shown on asset side ?

Dear Student, when in any year firm incurred Net Loss (Profit and loss Debit Balance) then it should be deducted from the reserves of the firm but if there are no reserves  in that particular year then it should be shown on the Assets side of the Balance Sheet as Profit and Loss A/c (Dr.). ​Therefore, it is given on the Assets side of the Balance Sheet.
Moreover, profits of the firm are credited to the Partner's Capital whereas loss of the firm debited to the partner's Capital Account.