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Ratio analysis

Ashwin kumar (-) (36 Points)

13 February 2014

In Liablity side of balance sheet say

reserve funds rs.10000

general reserve rs.20000

Equity share cap. rs.30000

Profit and loss rs.10000

Should we take Profit and loss a/c value while calculating shareholders funds?

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11 Replies

SUMIT KUMAR JANGID (CA FINAL STUDENT) (136 Points)
Replied 13 February 2014

No While calculating ShareHolders Funds Profit & Loss will not be considered, Because it not part of this.

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archana (IPCC) (55 Points)
Replied 13 February 2014

Yes profit and loss account will be considered while calculating shareholdars funds

SHAREHOLDAR FUNDS=Equity share capital+Reserve and surplus(Net of miscelaneous expenditure)+Preference Share Capital and for this purpose Reserve means all reserves whether general or specified.

subhan ansari (article assistant ) (46 Points)
Replied 13 February 2014

Agree with preeti.

CA SUKSHAM ARORA (CA) (569 Points)
Replied 14 February 2014

yes, p&l should be added

Prashant Ramesh Hegde (Article student) (164 Points)
Replied 14 February 2014

Yes .We should consider P&L a/c while computing shareholders fund.

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appalanaidu (ca) (23 Points)
Replied 14 February 2014

No I m not agree with dat because dat is not part in dat we can take 1st 3only

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 14 February 2014

Yes Profit and loss should form part of share holder fund. It should be noted that after adjusting all expenses. I.e net profit all appropriation accounts balance n tfr should form part of shares holders fund ...

M. Zuhaib (student) (25 Points)
Replied 15 February 2014

Yes p&l is part of sh holders fund.

Kartik Shetty (Industrial Trainee) (109 Points)
Replied 15 February 2014

From an analysis point of view there is no difference between general res and pnl. Having said that if the former is part if shareholdet`s fund, then why not pnl?

K S JOLLY (CA) (369 Points)
Replied 16 February 2014

Visit www.coursemateonline.com to download free notes and video lectures.

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PRATIK AGRAWAL (JOB) (564 Points)
Replied 17 February 2014

Profit and loss will definitely comes under shareholder's Fund.. Go to the basics.. Who is a shareholder? Isn't he the owner of the company? Yes na.. then how come Profit can not be a part of the Shareholder's Fund..