Adjustment of current year loss from the general reserves

The Company having previous year balance in general reserves of Rs.1 crore and have loss in current year of Rs.2.5 crore.

Can the company set-off there current year loss from the general reserves and show only the balance amount as loss in balance sheet.

Please also mentioned the related provisions or rules.

 

thanks & regards

Replies (2)
Yes it can set off current year losses from general reserves, remaining balance of loss should be shown as a negative balance under 'Reserve and Surplus' in Balance Sheet as per Schedule III to Comapinies Act,2013

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