hello friends i hav one query in accounts please clarify. p and l appropriation account starts with bringing down of net profit... then from that when we hav to deduct some amount for reserves????????????? is it after debiting expenses like interest on capital salary etc or before all such adjustments.. thank u
Pankaj Agarwal
(Proprietor)
(34 Points)
Replied 14 March 2012
It depends on information given in the Q.
(a)If transfer to reserve is given as % of net divisible profit, then it would be after adjustments
(B)If transfer to reserve is given as % of net profit, then it would be before adjustments
CAclubindia
