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When the balance sheet is made before profit appropriation, net income will be included as a item on the balance sheet in the equity section. In case net income is a loss, this amount will be negative. This is the situation that the question refers to (a loss is shown on the balance sheet).
After profit appropriationWhen the balance sheet is made after profit appropriation, net income is not shown as a separate item on the balance sheet under equity. Depending whether or not a dividend is paid, net income will show up as a dividend payable, or will be added to a reserve (for example, retained earnings). In case of a loss, it will be subtracted from a reserve.
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Impontance of balance sheet and profit and loss statement?
balance sheet show the financial position of the any business entity from beginning to up to date.
What is the formula for consolidation balance sheet?
There is no simple formula for consolidated balance sheet but in consolidated balance sheet all assets and liabilities of parent and child companies are joint together to show in one financial statement.
How depreciation influences balance sheet and profit and loss statement?
Profit and loss sheet - show the depreciation for the current year only as an expenseBalance sheet - show the cost price of the asset less any accumulated depreciation from previous years and less the depreciation for the current year.Hope this helps
Are fees earned showed on a balance sheet?
No Fees Earned is Income Statement item it dont show on Balance sheet
Why balance sheet prepared?
Balance sheet is prepared to show the overall performance of business from it's inception to till date.
