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Answer Posted / anandgurrala
Net Profit should be added to the capital because it is the
property of the Share holders or the owners or the company
as it was generated from the funds generated from them. and
in the other hand it is treated as liability (to bo shown
in liabilities side) because it should be distributed to
the share holders(Dividend) or the the owners of the
company.
| Is This Answer Correct ? | 8 Yes | 4 No |
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