If net profit is a profit why does it appear on the
liability side of the balance sheet
Answer Posted / 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 |
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