Answer Posted / madan
We have to add net profits to his capital in balance sheet
because it is proprietor's capital from that capital we have
have earned profits. And profits are liability to the
business. Profits increases the proprietor's capital. The
proprietor had invested capital to earn profits. So, for all
the above reasons we have to add profits and deduct all
losses of the business.
Is This Answer Correct ? | 34 Yes | 8 No |
Post New Answer View All Answers
Explain the Realisation concept and Accounting concept? why do you prepare p/l appropriation account? 4 difference b/w public and private caompany? How do you calculated closing stock in tradind a/c? Contents an invoice receipt? classification of Error as per accounting? Diff btwn Satutory audit & Internal audit? Diff b/w reserves for bad debts and provision for bad debts? Where the Bank book and the Cash book will not reconcile? When will the Cash book have a credit balance?
If a consultant charged his fee n receive so can i pass the journal entry n how i can i maintain bal sheet
What is budget variance analysis?
What is the important of computerized accounting to manual?
when the ABC's personal bank to to his business bank money transferred(paid) then how to pass the entry.
DIFFERNCE BETWEEN RESERVE AND FUND?
What are the steps involved in project implementation?
what is apply SI post
How to pass accounting entry for a tender cost and under which head? and how to show joint venture in venture's accounting books?under which head?
give 3 reasons why capital is referred to as a special liability
can any body tell me the procedure to learn accountancy with easy tips.i.e., layman accounting policy and rules of debit and credit.
can we credit depreciation of the year to the general reserves in a balance sheet of that year? and also enlist some relevant documents or standards?
what do you maen by Expected rate of return ? Is there any formula for expected rate of return? what is systematic & unsystematic risk ? how to calculate both the risk?
What a deferred asset is and give an example?
What is rate & taxes in Accounting. when we make a journal entry like rate & taxes debit & party credit. So i want to guide me consider for rate & Taxes.