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If net profit is a profit why does it appear on the
liability side of the balance sheet
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Answer Posted / prasanta
Profit is regarded as the lifeblood of the company and also
for the existence of business profit is the integral
part,so whenever a business man investing money into the
business he is always expecting returns for running his
business smoothly .As both owner and business both are
separate from each other that capital investment as well as
return from this became the liability of the business.
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