Profit and loss appropriation

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Gowtham

Gowtham (Querist)
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26 May 2014 Anyone send me the P & L Appropriation items which specifies in Debit & Credit side

Deepti Asawa

Deepti Asawa (Expert)
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26 May 2014 In the debit side of P & L appropriation account, we will show the following items.

1. Transfer to reserve /general reserve.

2. Transfer to dividend/interim dividend/proposed dividend.

3. Debenture redemption fund account.

4. Dividend equalization fund account.

5. Dividend Distribution Tax (A dividend distribution tax and surcharge is paid by companies before distribution.)

6. Income tax for previous year not provided for.

7. Surplus transfer to balance sheet.

In the credit side of this account, we will show the following accounts

1. Balance of surplus of previous year.

2. Net Profit of this year.

3. Amount withdrawn from general reserve or any other reserve.

4. Provision such as income tax provision no longer required or excess of provision or refund of tax.