Why profit is a liability and loss is an assets
- 20 Answers
- 103346 Views
- Banesco Seguros, FactSet Systems, IIM, South Indian Bank, I also Faced
- E-Mail Answers
Answer Posted / prasad shirke
profit is a indirect income of a capital. when we start
business,we invest our capitl for earning profit,hence at
the end of the year we add profit in capital account.
Liabilities means dues, profit is the dues of the Capital.
if Capital received Profit he invest part of this profit in
business for increse his business,hence Profit is a
liability.
Loss is oposit of Profit,we also deducted loss from
Capital.but as per presentation point of view we take a
Loss on Assets side (thhi is my point of view)
| Is This Answer Correct ? | 10 Yes | 4 No |
Post New Answer View All Answers
what is audit mean? what is vouching? how to finalize the account? what is the meaning of + cast < as per last year auditor’s a/c ^ as per ledger JV journal voucher PV payment voucher AJV authorised journal voucher APV authorised journal voucher RV receiving voucher PCV petty cash voucher CPV cash payment voucher DN debit note DO delivery order PO purchases order CN credit note PS policy schedule RPS renewal policy schedule B bill Cx cross check nCx cannot cross check CB cash bill L list/letter SRF stock requisition form R report OR office report INV invoice DS deposit slip AB assessment bill Re receipt ECF entertainment claim form ATRF air ticket requisition form
If someone knows about the test pattern of Junior executive accounts than please share.
Do v call director in the partnership firm?
You are given the following information in respect of a company: Fixed cost –Rs.13,000 Variable cost –Rs.14,000 Net profit –Rs.3,000 Net sales-Rs.30,000 Find out: a>BEP b>The profit for sales volume of Rs.50,000 c>The volume of sales to make a profit of Rs.10,000
EXPAND_________TOEFEL
3. You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
Comments Elements in accounting
Harpithas due Rs 55000 was settled infull by taking Haris due Rs 12500 in adjustment Pass necessary entry
what is cost centre , job costing & Budget control. what is the effect of these.Explain its briefly.
what is Calculation of Depreciation for 4 to 5 Years?
HOW I CAN PREPARE A BALANCE SHEET OF A COMPANY ?
in accounts welding institute which category will come for example 1. recruitment con.pvt ltd. is man power recruit category ,so iwant to welding institute (learning welding and fibrication)
While posting of FB50 entry therE showing errro msg " NOT ASSIGN COMPANY CODE OR CALCULATION PROCEDURE"
Questions on Purchase Book & sales Book .Balance sheet , Purchase & Sales Return
Received an order from Babu for the supply of goods Rs.200/-. state whether the the following transcation is business transcation or non business transcation? with reson or explaination?
