Why net profit transfer to liablity side ?

Answer Posted / nilesh girase

Because Profit of Organisation is working efforts of
Propritor/Partners/Co.as a income of consern persons. So
any firm liable to pay share of profit to above consern
persons. And Liability means a payment against
service/efforts provide to organtisation.
Net Profit = Sales - Purchase - Direct & Indirect Exp.of
Org.

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