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What is the effect of capital adequacy ratio in profit and loss account?
Wiki User
∙ 14y ago
Well there is an inverse re
lation ship between profitabliltiy and CAR.Higher CAR reflects higher amount of money remains idle.so,it lost its oppourtunity interest income.as a result it will defineltly affects in profitability.however there are some exceptional cases.thats because of not funding income comes from non funding activities.
Wiki User
∙ 14y ago
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Is additional capital will enter in the profit and loss appropriation account?
Additional capital is shown under capital account of balance sheet and not shown in profit and loss appropriation account.
What is the journal entry to close the income summary account when a profit is shown?
debit profit and losscredit owners capital account
What is the nature of the income summary account and what are the types of summary data that may be posted to this account?
Income summary is a temporary adjusting account, which eliminates all the revenues and expenses (the temporary accounts) and transfers the effect (profit or loss) to the owner's capital capital account thereby increasing or decreasing it.
Transfer of net profit to capital account in tally 9?
profit or loss alc dr to capital alc.... enter in journal
Is additional capital enter in profit and loss appropriation account?
no
Is accrued income effect Profit and Loss Account?
yes it do effect it should be credited in your profit and loss a/c
What is the journal entry for profit transfer from profit and loss account to balance sheet?
Debit profit and loss accountCredit owners capital
Can you add profit from sales in capital?
Profit or loss from sales is part of capital of business and that's why it is shown in balance sheet as an addition or deduction from the capital of business to show the net effect of operations.
Name the 7 journals from which totals are posted into the general ledger?
sundry creditor capital account fixed assest bank account profit and loss
What are the difference between fixed capital and fluctuating capital?
Difference between Fixed and Fluctuating Capital AccountsFixed and fluctuating capital accounts are the terms which are often used in the context of partnership. Partners can maintain the capital accounts in two ways one is fixed capital account and other is fluctuating capital accounts, let's look at the difference between both of them - Fixed Capital Account - Under this system, the capital which is introduced by partners will remain fixed throughout the life of the partnership. Hence under this method two type of accounts are made one is capital account and other is current account. Therefore all entries relating to drawings, interest on capital, profit and loss share of partner are made in a separate account for each partner, it is called current account of partners. However when partner brings additional capital or withdraws capital permanently, then capital account is credited or debited respectively.Fluctuating Capital Account - Under this method capital account of partners will not remain fixed rather they will keep fluctuating from time to time. In this method all the entries related to drawings, interest on capital and share of profit and loss of partner are recorded in capital account, hence in this method there is no need for current account.Fluctuating capital account method is usually preferred by partners; however they can also use fixed capital account according to their business and preference.
How do you account for tax owed for profit from car sale?
Profit on sale of old car comes under capital gain. You can save your tax to purchases a new car with in a year.
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
