Interested to Buy Any Domain ? << Click Here >> for more details...
Why we Add the net profit in the balance sheet ? Why we
shows profit in the liability side of the balance sheet?
- 12 Answers
- 20962 Views
- I also Faced
- E-Mail Answers
Answer Posted / sumayya
because profit is earned on the capital invested which is not the company's money.
capital is also like a liability and the profit should actually be given to the owner and the money is still there with the company so it is again a liab. for the company to pay the profit which is a return on the capital invested by the owner.
| Is This Answer Correct ? | 1 Yes | 1 No |
Post New Answer View All Answers
Raj & Raj Ltd purchased a machinery on 01.01.1996 for Rs.88,000.The life of the machine estimated to be 5 Yrs.It was calculated that the old machinery would fetch Rs.8000 at the end of its useful life.it was decided to replace the machinery at the end of the 5th year by setting up depreciation fund and invest the annual depreciation (along with interest earned each year) in gilt edged securities carrying interest at 5% p.a. At the end of the 5th Year the securities were sold for Rs.9000.As per the sinking fund table Rs.14,478 is to be invested every year.A new machine was purchased on 01.01.2001 for Rs.1,00,000.pass the journal entries and show the ledger accounts
If we spend a sum of Rs.10 Lacs towards Processing and Upfront fee for obtaining working capital term loan. can we treat this amount as a deferred revenue expenditure or not
What are the different payrolls? how we calculate the exmployee payroll? how we calculate the employee salaries details?
what is difference between account and accounting
How does the accounting treatment of a partner's salary differ from that of an employee's salary in a partnership?
If i have a company in India doing purchase from Shrilanka, If i buy in Shrilankan local currency and make the payments in Indian Currency At the end of year how shall i settle the difference Exchange money in Books of Accounts.
Why we have to present first and second draft(Bill of Exchange) for bank negotiation.Why cant we present only One draft?
bank exam paper
how to calculate share values of a company.
what is the procedure for issuing th C form
WHICH IS MORE RISKY TO A BANKER, A CASH CREDIT OR A LETTER OF CREDIT
Short Answer on _________________City Compensatory allowance
how to do the recurring entries or steps to follow that
In order to comply with the matching principle, adjustment entries are made at the preparation of ----------
ACCOUNTING CONCEPTS AND CONVENTIONS
