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Why profit is a liability and loss is an assets
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Answer Posted / syed mujeer ahmed
its simple friends
profit if comes in business either u have to distribute it the share holders or you should add up in your capital to increase or expand ur business so profit is considered as laibility
now coming to
loss it will be treated as asset because losses we have to recover and we cant distribute loss so so its an asset
if u have to recieve some money from someone and if he is not paying the money to u means he is a debtor to you and debtor comes under assets and if he is not paying the amount its called as bad debts so in future u have to receive money and whatever u recieve it will treated as asset
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