why the profit of a company is shown on the liabilities side
in the balance sheet
Answers were Sorted based on User's Feedback
Answer / jitu
as profit is ultimately available for the owners and thats
why if we record capital on liability side so profit also
recorded on liability side
Is This Answer Correct ? | 6 Yes | 0 No |
Answer / ketaki
Owners invested funds in business to generate income
source. So its liability of business to give retruns on
amt. invested by owner in forms of capital. So it shows
liability side of balance sheet.
Is This Answer Correct ? | 5 Yes | 0 No |
Answer / zubair_glad24@yahoo.com
HI jetu Hi ketaki
The profit of a company is shown on the liabilities side in
the balance sheet because again profit have to be
distributed to share holder
Mohammed Zubair
Is This Answer Correct ? | 5 Yes | 0 No |
Answer / hemanshu
OWNERS OR PARTNERS OR SHARE CAPITAL ARE ALSO SHOWN AS A
LIABLITIES IN ORGANISAION. BCOS IT IS THE VALUE FROM THEN
THE BUSINESS CAN RUN. AND ONCE PROFIT GENERATE IT SHOULD BE
ADDED IN THIS VALUE. THEREFOR IT SHOWN AS A LIALILITES SIDE.
Is This Answer Correct ? | 0 Yes | 0 No |
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