Profit balance from p/l a/c

22 June 2019
IN DPT 3 form, profit from P/L A/c can be shown in FREE RESERVE column ?

Manish (Expert)
22 June 2019
Yes, but credit balance of P/L A/c is not free reserve by default as per section 2. It does not include:
(i) unrealised gains, notional gains or revaluation of assets.
(ii) change in carrying amount of an asset or of a liability recognized in equity.
(iii) surplus in profit and loss account on measurement of the asset or the liability at fair value.

24 June 2019
thank u for reply SIR

Manish (Expert)
24 June 2019
You're welcome.

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