What do we say if the owner asks where the profit in the profit and lost account really is?
Menu
Finalisation accounts
Replies (8)
Quick Summary
Simple, compare last years stamens with this year.
Find out if sales increased
find out if the expenses decreased
find out of finance costs decreased.
Like that, compare the statement and find out what increased and what decreased. That increased your profits.
Analyse Cashflows as well.
Verify the sales, expenses, stock etc. if they are increased or decreased
I think he is asking you because of difference in cash balance and profit so, prepare a cash flow statement and explain it
Show all the registers, books of accounts etc
simply can show profit and loss account balance credit balance shows as Net Profit.
Yes this can also be shown
You can prepare proper p&l account, and balance sheet and explain the things
The credit balance is itself net profit in profit & loss account in final accounts.
Recent Topics :
- Query on FLAIR return
- Itr 4 problem
- Capital Gains Mismatch Due to Sale Agreement in FY
- REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COM
- DTAA benefits
- SUPPLEMENTARY AGREEMENT FOR ADDING A PARTER IN TN
- Part availmement of ITC in case of rejection of su
- Due date for itr 5 no audit with loss for fy 25 26
- Capital Gains Mismatch AIS
- Inward E-way bill from Tally Prime 7.1
Related Topics :
CAclubindia
