Why we Add the net profit in the balance sheet ? Why we
shows profit in the liability side of the balance sheet?
- 12 Answers
- 17661 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / shikha
hii
We shown profit in the liablity side of balance sheet
because that profit has to be distributed among the
shareholder , owners of the company. We add profit with the
capital because capital is contributed by the owners and
owners shuold be very well aware of how much the net profit
the business have in a particular year.
| Is This Answer Correct ? | 0 Yes | 2 No |
Answer / ananth
the profit has to shown in the balance sheet asset side
only because it is the liability to the company andit has
to be yet distribute to the share holders if teh company
requires the finacial asistance then it may plough back its
profit to the business that's why we have to enter the
profit in the liability side of the balance sheet only
| Is This Answer Correct ? | 2 Yes | 5 No |
Give simple definition on Dual Entity Concept
What is the journal entry of.Tds. ?
What is the working formula for Inventory turnover
what is debit note received entry ?
WHO ARE THE PROMOTERS?
What type of question generally asked in Brokerage Firm ?
How much percentage of discounts lost did you have in accounts payable ?percentage increased or decreased?
Expand ------RFQ
How do the accounting standards facilitate the work of accountants?
what is working management?
How is the price of a particular product fixed. What are the considerations taken for that?
wat is extended price??
Audit 
