prem (Proprietor) (26 Points)
12 December 2012
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While calculating the limits under Section 58A of Companies Act for acceptance of Fixed Deposits, can we consider capital reserves as part of Share Capital + Free Reserves ?
Under what circumstances can the Capital Reserve be considered as Free Reserves ? The Company has credited the profit on sale of shares directly to Capital Reserve. Can this portion of Capital Reserve be considered as Free Reserve ? |
Anil Sankar V
(CA)
(1877 Points)
Replied 12 December 2012
profit on sale of fixed assets -transferred to captial reserve is treated as free reserve .
pofit on sale of shares- which is capital reserve to be treated as free reserve.
As per my knowledge.
CAclubindia
