Profit & Lass A/c vs General Reserve.
This query is : Resolved
03 September 2010
What are the rules for transfering profits to General Reserves other than the mandatory transfer in case of Dividends.
For all purposes, is the balance of Profit & Loss A/c in Shareholders Equity to be treated on par with General Reserves?
For all purposes, is the balance of Profit & Loss A/c in Shareholders Equity to be treated on par with General Reserves?
03 September 2010
Transfer to Reserve less then 10% NO CONDITION
Transfer to Reserve Exceeding 10%:
(A)
if co declared No Bonus in this/ immediately preceding 3 years - Rate of Dividend> Average rate of Div. in immediately preceding 3 years.
(B)
if co declared Bonus in this/ immediately
preceding 3 years AMOUNT of Dividend> Average AMOUNT of Div. in immediately preceding 3 years.
(C)
Company not declaring dividend : Amount proposed to be transferred to Reserve should be lee then average amount of Div. declared in immediately preceding 3 years.
Transfer to Reserve Exceeding 10%:
(A)
if co declared No Bonus in this/ immediately preceding 3 years - Rate of Dividend> Average rate of Div. in immediately preceding 3 years.
(B)
if co declared Bonus in this/ immediately
preceding 3 years AMOUNT of Dividend> Average AMOUNT of Div. in immediately preceding 3 years.
(C)
Company not declaring dividend : Amount proposed to be transferred to Reserve should be lee then average amount of Div. declared in immediately preceding 3 years.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Experts need help
- EPF FULL & FINAL RULES IN 2026
- Management System (IMS)
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Gift Received from nonblood relative
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
