Asslaaamu Alaukum
I have a limited company selling goods and I understand I need to pay Zakat on inventory, cash, receivable and deduct short term payable however, my question is if I also need to pay Zakat on retained profits. I only draw profit from the business as and when necessary and invest remaining profit in buying invenotry. My understaning is that I only pay Zakat on net assets which would be £150 in the example below however, if I also need to pay Zakat on retained profit then I will be paying Zakat on £300 which does not make sense.
JZK
Cash £100
Stock £100
Receivables £50
Payables (£100)
Net assets £150
Share capital £50
Retained profit £100