hello friends i hav one query in accounts please clarify. p and l appropriation account starts with bringing down of net profit... then from that when we hav to deduct some amount for reserves????????????? is it after debiting expenses like interest on capital salary etc or before all such adjustments.. thank u
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Ipcc account doubt
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HELLO YA P&L APPROPRATION STARTS FROM BRINGING DOWN NET PROFIT \ CREDITING NP AND NORMALLY SALARIES , COMM ETC ARE DEBITED . GENERALLIF THE COMPANY DECIDES TO TRF SOME PART OF ITS PROFIT TO RESERVES THEN ONLY RESERVE IS DEBITED TO P/L APPROPRATION ACCOUNT
It depends on information given in the Q.
(a)If transfer to reserve is given as % of net divisible profit, then it would be after adjustments
(B)If transfer to reserve is given as % of net profit, then it would be before adjustments
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