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Why we Add the net profit in the balance sheet ? Why we
shows profit in the liability side of the balance sheet?

Answer Posted / ananth

the profit has to shown in the balance sheet asset side
only because it is the liability to the company andit has
to be yet distribute to the share holders if teh company
requires the finacial asistance then it may plough back its
profit to the business that's why we have to enter the
profit in the liability side of the balance sheet only

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