10 April 2012
Profit earned is automatically represented by any of the assets so it need not be added separately as profit earned shall be taken in the reserves & surplus on liability side and on the assets side it is mixed with either stock in trade or debtors or bank balances or cash in hand or any other current assets.
11 April 2012
Agreed. In the double entry system of accounting you need not add the profit separately to cash as it is already added to various current assets in the usual course of business.