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why net profit will be added to the balance sheet? is there
any reason?
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Answer Posted / ankit pathak
Net profit is added to the balance sheet on the liability
side because profit is the liability of the firm which they
have to pay out to the capital investors or the
shareholders for their contribution towards the firm.Hence
it is shown on the capital+liability side of the
balancesheet.
| Is This Answer Correct ? | 17 Yes | 3 No |
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