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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Ratio analysis
Replies (11)
No While calculating ShareHolders Funds Profit & Loss will not be considered, Because it not part of this.
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.
Agree with preeti.
yes, p&l should be added
Yes .We should consider P&L a/c while computing shareholders fund.
No I m not agree with dat because dat is not part in dat we can take 1st 3only
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 ...
Yes p&l is part of sh holders fund.
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?
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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..
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