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Can the balance sheet be balanced when there is a gross profit and a net loss?
Wiki User
∙ 13y ago
Yes it can. In this case it just means that overheads were higher than the gross profit (Sales less Cost of Goods Sold) resulting in an overal loss.
Wiki User
∙ 13y ago
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Why there is bank overdraft even though business making profit?
overdraft is included in balance sheet not in income statement which calculates gross and net profit
Where does Netprofit appear in the Balance Sheet?
Net profit appears on liabilities of balance sheet . Net profit is added to capital.
What are the main features of a balance sheet?
The main parts of a balance sheet are profit, loss and inventory.
Is owners drawing on the balance sheet net or gross income?
gross income
How can find out profit into balance sheet?
To determine profit in a balance sheet, you would need to look at the income statement. The income statement shows revenues and expenses for a specific period, such as a year. At the end of the period, the net income (profit) is transferred to the balance sheet as retained earnings. The retained earnings section of the balance sheet will show the accumulated profit over time.
Where are surplus shown in balance sheet?
With non-profit organisations, when the balance sheet doesn't show a loss, but what would be classified a profit for profit organisations, it is called a surplus. When it is what would be considered a loss for profit organisations, it is called a deficit.
What are the reason where the balance sheet will not tally?
Balance sheet is the summary of Assets ,Liabalities , and profit or loss from Profit and loss account. following are the common reasons 1.As Purely based on nduble entry system For each ledger debits there should a equlent ledger credit on all transactions. 2. We can divide ledgers into Balance sheet items and Profil and loss account items. Balance sheet ledgers are ledger balances which directly reflects in Balance sheet Profit and Loss ledgers are ledgers which is reflecting only in Profit and loss account not in balance sheet. 3. Check the opening balance sheet, difference in opening balance sheet may the reason.
Three main sectons of a balance sheet?
PROFIT, LOSS, AND INVENTORY ARE OFTEN CONSIDERED MAIN SECTIONS OF A BALANCE SHEET.
Do provisions for loan loss go in the balance sheet or profit and loss?
Profit and Loss.
Where profit and loss posted in balance sheet?
Profit will add with capital and loss will deduct from it.
The balance sheet of a firm shows?
profit or loss for the period
What relationship is there between the accounting equation and the balance sheet?
The relationship between the accounting equation and the balance sheet is the NET PROFIT. ( I THINK :/ )
