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.
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