Why Profit is a liability and Loss an asset?

Question

In banking terms only and please explain a bit...

Answer 1

You are mistaken.

In accounting there are always two entries. The identity "Assets equals liabilities plus shareholder equity" must always hold. Generally, the value of profits is added to assets (for example as cash) and to shareholder equity (as net income). If there is a loss, there may also be a liability (like debt) that is used to cover the loss. In that case, you would generally add something to Liabilities and either add to Assets or subtract from Shareholder Equity.

You need to learn something about accounting if you are going to ask questions like this.