Capital and net Profit - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: General (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=3) +--- Forum: General Discussion (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=5) +--- Thread: Capital and net Profit (/showthread.php?tid=52) |
Capital and net Profit - khawerjavedqazi - 04-23-2003 It is said that profit of a business increases its capital , then why the profit of a paricular year is not added into the capital of the next year. Year1 Year2 Capital 15,000 Profit 3,000 Now in year2 why will we not enter the figure of 18,000 as the profit of year1 has increased the capital. - sirhandi - 04-24-2003 Net profit doesnt increase the capital instead it increases the equity being the part of the R.E n Reserves.... - Asif - 04-27-2003 well done! Majid bhai. well done keep it up!<img src=icon_smile_approve.gif border=0 align=middle> Muhammad Asif Masood for islam see, www.dawateislami.net |