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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?
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Answer Posted / sooraj
hai eveery one....
my answer is as follows.
net profit treated as a liability.the owner contribute
capital to the organisation,so it's the duty of the company
to return something for their capital,because the owner
carries lot of risk for their funds........so the company
give a part of profit to the owners for facing that risk......
| Is This Answer Correct ? | 9 Yes | 1 No |
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