Free Reserves
This query is : Resolved
Faiz Ahmed
(Querist)
08 August 2010
Is Profit & Loss A/c (Cr. balance) a free reserves??? Kindly explain with logic??
CA Ravi Sisodia
(Expert)
08 August 2010
CREDIT BALANCE MEANS HAVE A POSITIVE BALANCE OF FUND. INCOME IS EXCEED THEN EXPENSES. IT'S AVAILABLE FOR DISTRIBUTION OF DIVIDEND.
Faiz Ahmed
(Querist)
08 August 2010
Kindly tell whether it(P&l) can be used for bonus issue or not? Please provide reasoning for the same.
08 August 2010
This is a conceptual question.
From the nomenclature itself; Free reserves means reserves which can be utilized freely.
Tell me; when you earn money and you pay taxes thereon; then whether you can utilize the remaining profits freely or not ?
According to you; what does it mean the credit balance of profit and loss account. A profit or a loss or anything else ?
Hope your query is solved.
From the nomenclature itself; Free reserves means reserves which can be utilized freely.
Tell me; when you earn money and you pay taxes thereon; then whether you can utilize the remaining profits freely or not ?
According to you; what does it mean the credit balance of profit and loss account. A profit or a loss or anything else ?
Hope your query is solved.
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Faiz Ahmed
(Querist)
08 August 2010
Thnx , I understood now.
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