Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Accounts

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012 Hello,

profit earned should be added to cash while calculating net current assets???

Thanks

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

10 April 2012 Profit earned is automatically represented by any of the assets so it need not be added separately as profit earned shall be taken in the reserves & surplus on liability side and on the assets side it is mixed with either stock in trade or debtors or bank balances or cash in hand or any other current assets.

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

10 April 2012 Agree with expert.

Guest

Guest (Expert)

11 April 2012 Agreed. In the double entry system of accounting you need not add the profit separately to cash as it is already added to various current assets in the usual course of business.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now