Transfer of net profit to capital account
This query is : Resolved
shashikant
(Querist)
12 February 2016
I Want to know why & when Net Profit transfer to capital account
And what is effect of the entry in business
And what is effect of the entry in business
KAVIRAJA ADDANGADI
(Expert)
12 February 2016
Net profit is arrived after adjust of allowable expenses, after adjusting Tax liability from net profit balance can be transferred to capital A/c . To the extent
capital will increase.
Increase in capital balance in balance sheet show sign of prosperity.
capital will increase.
Increase in capital balance in balance sheet show sign of prosperity.
shashikant
(Querist)
13 February 2016
Please Explain in Brief
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