How do you record profits?
submitted by Warner Brandes

Arnold

You don't record profits. You record income and expense. Profits (or losses) are calculated by subtracting expenses from income.

WIYDORVEN CHANTAL

Profit is recorded after all expenses are accounted for.

Liaqat

Profit can be defined as the excess amount of revenue over the expense. If the revenue exceeds the expense it will show the profit. Otherwise it will result in a loss. When there is a profit, it will be shown as owner's equity in the balance sheet.

emosai_04

You calculate profits by subtracting the expenses from total income. That is the profit.