query

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 i was a question in an interview that how can profit be reduced when there is no cash in balance sheet . what can be done to reduce the profit 

Replies (8)

increase in non cash expenses. like depreciation!!!

Also  u can make provision for expenses so as to reduce profit without having cash in B/S

 but how can depriciation be incresed (depriciation rates are fixed).Kaya can u explain.

Manish sir r u referring for creating fake provision then how can we settle them.Pay them or reverse them 

Any way thanks to both of u

it will be better to reverse to reverse them........ another way to reduce profit without incurring cash expenses is to write-off the sundry debtors from which balance standing for 3 years or more.....

another way is to reduce the closing stock figure.

First u have to ask the intervieur that why they reduse the profit ???

Then also he know more about this then u have to tell that it was not redused by You, , , Becoz it may be happen that he just test your honesty & loyelti................

Sale at discounted prices.

ask the interviewer wheteher they have lost any interest in continuing their business?

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