Why we Add the net profit in the balance sheet ? Why we
shows profit in the liability side of the balance sheet?
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Answer Posted / anshu
because it is a liability share holder or proprietor is
owner of company that why it pay to them only
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Ram retired from partnership. The partners with mutual consent agreed to put the capital balance as on the date of retirement as loan to the firm @ 18% pa. The credit balance to his capital account was Rs 325000/- Pass necessary entry
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