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Reserves and Surplus

Others 2212 views 2 replies
if R & S negative what it means...
In companies accounts Schedule III
Replies (2)
If reserve and surpluses are in negative figure it means that the profit is negative for that year i.e, loss occurs or if any reserve carried forward at losses from previous years.
Under companies act Such R&S should be shown in negative figure in balance sheet under Shareholders Funds and Capital

AS per Schedule III  - Debit  Balance  of  Profit  & Loss account  shall be shown  as  negative figure  under  "  Surplus "  . Similarly balance of  Reserve & Surplus "   after   adjusting negative balance  of Surplus , if  any , Shall be shown under the  head " Reserve & Surplus" even if the resulting  figure is in the negative . 


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