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why profits are shown as liability and loss as asset in
balance sheet?
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Answer / giri
Profits are liability for the company because shareholders
are having the right on those profits. So, it is shown in
the assets sides of B/s. But loss can be shown as the
assets side of the B/s if we can capitalise those losses in
future years or If we are unable to reduce the paid-up
capital as per MOA then we show losses in the asset side.
| Is This Answer Correct ? | 10 Yes | 4 No |
Answer / vimesh
Profit showing as liability side and loss showing in asset
side because in a company's profit should have to paid as a
dividend as their share holders so profit is liability in
company.
| Is This Answer Correct ? | 6 Yes | 0 No |
dear NEHA
if you know the answer than try to share it with others. we are here to share knowledge. i know how difficult these questions when they are asked in any interview. i know you are intelligent and i expect your answer for this quetion.
reply me at namammabali@gmail.com
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / mandar bose
Though Balance sheet consider as a financial statement it
doesnt have debit & credit side. But asset side consider as
debit side & liabilities as credit side.This is not
mentioned in B/S.It is hidden in nature.
| Is This Answer Correct ? | 1 Yes | 9 No |
Answer / neha
I dont know why people ask foolish type questions.
If one learns accounting then there is no need to ask such
type of que.
| Is This Answer Correct ? | 2 Yes | 18 No |
WHAT IS LIMITED REVIEW? WHY IT IS REQUIRE?
Expand ------RGGVY
Deferred tax
DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
difference between options and futurs
what do u know about accountancy and book keeping?
2 Answers State Bank Of India SBI,
Give me solved example of bank book and cash book
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