Why profit is a liability and loss is an assets
Answer Posted / prasad shirke
profit is a indirect income of a capital. when we start
business,we invest our capitl for earning profit,hence at
the end of the year we add profit in capital account.
Liabilities means dues, profit is the dues of the Capital.
if Capital received Profit he invest part of this profit in
business for increse his business,hence Profit is a
liability.
Loss is oposit of Profit,we also deducted loss from
Capital.but as per presentation point of view we take a
Loss on Assets side (thhi is my point of view)
Is This Answer Correct ? | 10 Yes | 4 No |
Post New Answer View All Answers
What is the New GL concept? how do you configure new GL a/c?
Calculate the total Depreciation for four or five Years so practice some problems on depreciation?
Suresh agreed to adjust Ramesh due amount of Rs 15000- from his credit balance
Short Answer on __________written Down value
let me know the meaning and Nature of cash
how we will prepare n file income tax returns for individuals?explain
wht can u do for the growth of bhel?
why do u want to join bpo sector
What are the accounting conventions and Practices?
respected sir,i am doing II b.com(CA) in a reputed college..i want to know about the ideas and ways to shine in future.i am doing ICWAI also sir.i want to know what shall i study more in this field to shine...
Dear Friends, Please help me with the below, I am new to the current company and newly accountant. My question is, In Balance sheet, Cash in Drawer is showing excess amount and I could not tally it with sales. Please guide me how do I need to tally CASH IN DRAWER? I don't want to reconcile. I only want to tally. Please help. Thanks in advance.
I have been interview in next week my posting is accounts officer i have be manage with AP,AR,BRS and GL what Books i have read.
pl send me SBI previous question papers for clerical post to my email id :jahnavi_devi@yahoo.com
What is payment/receipt/period accruals?
what is the difference between financial accouning and financial management?