why we are considering the net profit as liable in balance
sheet
Answer Posted / k. phalguna rao
Ex: A starded business with the name of ABC company with
investment of Rs. 1,00,000/-
so here A is owne of the company
what ever his investment to the ABC company is called
capital (liable to the company)
Note: Profit is return of Investment of the Owner for his
investment as a capital of Rs. 1,00,000/- in the business
so that profit belongs to the owner of the co not to the
ABC co., in the year end
hence profit will be shown in liabilities which will be
added to the capital
for next f/y capital will as follows
100000 + this year profit(Ex. 10% 10000) = 1,10,000.00
Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
hi every one i just want to know the entry for bank charges dt 31.3.2016 which deducted on 02.04.2016 kindly help me thank you raj
Explain what a deferred asset is and give an example?
Volga is a large manufacturing company in the private sector. In 2007 the company had a gross sale of Rs.980.2 crore. The other financial data for the company are given below: Items Rs. In crore Net worth 152.31 Borrowing 165.47 EBIT 43.17 Interest 34.39 Fixed cost (excluding interest) 118.23 Calculate: a. Debt equity ratio b. Operating leverage c. Financial leverage d. Combined leverage. Interpret your results and comment on the Volga’s debt policy
what is different between leaser of subsidary book and journal?
What steps would you take before approving an invoice for payment?
what are the voucher entries for depreciation in tally and when?
Differentiate between provision and reserve?
What all are the documents need to check for a supplier payment?
What is the marginal cost formula?
What was your average accounts receivable days outstanding/days sales outstanding?
India me ,suppose that hmare pass 190000 Rs hai,to kitna tax lgega,or kis heshab se lgega,
What is fiduciary accounting?
Define balancing in accounting?
What is royalty reserve?
Was there a time when you lost the chance to engage a prospect? What happened and what did you learn?