last year company profit is Rs 50.000 ,the part of the
profit is transfer to reserve and surplus account . but
the current year company suffering loss .in that situation
company can take help Rs 25000 from reserve and surplus
. if yes than how can ,please reply me what is general entry
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Answer / surbhi bhandari
reserve & surplus a/c debit to profit & loss a/c
| Is This Answer Correct ? | 15 Yes | 0 No |
Answer / ravi
yes reserves & surplus amount which is kept as a reserve for last year can be utilized in this year
journal entry
reserves&surplus a/c dr 25000
TO P&LA/C 25000
Remaining 25000 can be utilized to set off future occuring
losses
| Is This Answer Correct ? | 8 Yes | 0 No |
Answer / tapan
when we transferred the profit in Reserve & Surplus Entry is
Reserve & Surplus A/c Dr
To Profit & Loss Account
Now Loss Occur so just reverse Entry
Profit & Loss A/C Dr
To Reserve & Surplus
| Is This Answer Correct ? | 3 Yes | 3 No |
Can anybody tell me diference between provisions of Profit and Loss account prepared as per company act & Income Tax Act?
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