Ratio analysis

Others 1303 views 11 replies

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?

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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