CASH PROFITS
This query is : Resolved
J SREEKUMAR
(Querist)
23 March 2009
What are cash profits & why it is called so? difference between cash profits & net profits?
regds,
s.kumar
regds,
s.kumar
23 March 2009
(A) Cash is liquid assets. It is differnece between receipt
and disbursement of any cash transaction. eg. rent paid in
cash of rs 10000/-p.m. Profit is combine effect of real and
nominal accounting transaction related to expenses and
income of mercantile business.
(B) Net profit comes after crediting all income and
deducting debit expenses from them. This profit is wealth
of business for the perticular year. Wealth has credit for
the business therefore netprofit adds or comes under
capital account.
and disbursement of any cash transaction. eg. rent paid in
cash of rs 10000/-p.m. Profit is combine effect of real and
nominal accounting transaction related to expenses and
income of mercantile business.
(B) Net profit comes after crediting all income and
deducting debit expenses from them. This profit is wealth
of business for the perticular year. Wealth has credit for
the business therefore netprofit adds or comes under
capital account.
CA Nitin Wadhwani
(Expert)
24 March 2009
Net Profits + Non cash expenses - Non cash Incomes = Cash Profits.
J SREEKUMAR
(Querist)
25 March 2009
dear all,
thanks a lot.
s.kumar
thanks a lot.
s.kumar
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