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why net profit is added to balance sheet, is there any
reason
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Answer / ajay prathap
The net profit is the profit finally available to the
enterprise for appropriation. This profit could be
distributed as dividend to share holders or retained in
business. That means profit is a liability to share holders
so,it will shown liabilities side of b/s.
| Is This Answer Correct ? | 8 Yes | 1 No |
Answer / chandrakanth
We are getting net profit because of the capital invested
by the owner. so it is also treated capital so we have to
put Liability side in the balance sheet.
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / pankaj modi
whatever at the end of the year company making net profit
this money comes in liability side as a company capital
because this money considered as a capiatl on that year.
| Is This Answer Correct ? | 4 Yes | 0 No |
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