if R & S negative what it means...
In companies accounts Schedule III
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Reserves and Surplus
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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
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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