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Profit & Lass A/c vs General Reserve.

This query is : Resolved 
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(Querist)
03 September 2010 What are the rules for transfering profits to General Reserves other than the mandatory transfer in case of Dividends.

For all purposes, is the balance of Profit & Loss A/c in Shareholders Equity to be treated on par with General Reserves?
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
03 September 2010 Transfer to Reserve less then 10% NO CONDITION

Transfer to Reserve Exceeding 10%:

(A)
if co declared No Bonus in this/ immediately preceding 3 years - Rate of Dividend> Average rate of Div. in immediately preceding 3 years.

(B)
if co declared Bonus in this/ immediately
preceding 3 years AMOUNT of Dividend> Average AMOUNT of Div. in immediately preceding 3 years.

(C)

Company not declaring dividend : Amount proposed to be transferred to Reserve should be lee then average amount of Div. declared in immediately preceding 3 years.
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