Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Profit and Loss Account of Bank

Save Share

This query is : Resolved

Chaitanyaa (Querist)
Follow

02 May 2022 In the profit and loss account of bank's, the previous year profit brought forward is mentioned below the current year profit and then it is factored in current year profit. Why this? .Previous Year profit should have been credited to Reserves and surplus last year only, then why is being brought in current year profit and loss account?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

03 May 2022 This is as per Banking regulations balance sheet format. Instead of crediting in reserves and surplus it will be accumulated in profit and loss account shown in reserves and surplus. Schedule under Balance in profit and loss account.
In the profit and loss appropriation account earlier year balance profit is brought down and added with current year profit and transfer to statutory reserves and dividend has to be made and balance carried over to next year.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!