Profit is a Liability or asset?

Answer Posted / muralikrishna katakam

no dought profit is a liability bcoz , whatever the rupee
earning earned by the organisation is out the investment
made by the share holders,so that should be directed
towards the shareholders,that is why the company paying
dividends ,for future expansion purposes it can retain
those funds under the head general reserve by passing the
following entry p&l a/c dr
to general reserve

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