Interested to Buy Any Domain ? << Click Here >> for more details...
If net profit is a profit why does it appear on the
liability side of the balance sheet
- 4 Answers
- 11057 Views
- Gopaljee, Hewitt, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / manoj singh negi (amrapali ins
It's appear on the liability side because it's the result
of capital investment of a company and capital is a
libiality for business (because of business entity
concept). whatever capital invested by owner he want some
return form it, thatwhy net profit become liability for
business, it is so because business have to pay this(net
profit) to the owner.
| Is This Answer Correct ? | 40 Yes | 1 No |
Answer / moti
because capital is treated as liablities in accounts and
the treatment of net loss or profit is either substracted
or added in capital for knowing the increment of capital
or decrement of capital.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / megha arora
A bussiness/organisation/company is not a natural entity.
It runs on the capital provided by its
members/owners/shareholders etc.So whatever is the profit
is actuaaly of these persons.So its a liability.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / 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.
| Is This Answer Correct ? | 4 Yes | 0 No |
where we posted capital ac in sole trader balance sheet and why?
What is a share?
why is nifty lower than sensex?
pls send me capital iq quition paper pls, ihave 2mr interview thanks
can we revised er-3 return.
What form of classification of expenses is expected for a charity whose gross income does not exceed ?250,000 preparing accruals accounts?
Expand ------NACo
what is the definition of direct expenses?
what is debentures
31 Answers eClerx, IBM, Syntel,
Expand-----------MRP
fill in the Blanks You will always find_______________balance in cash account
a companys assets minus its liabilities is
Audit 
