Hello All,
I need a help.
We have a general reserve balance.
Now we want to transfer the same to Profit & loss account(retained earnings) instead of maintaning the same as Gen Reserve.
Can we do that?? What could be the better approach either to mantain general reserve or trasfering itto P&L account..
If there is no differece, can you share the procedure with me???
Thanks in advance
There is a difference in case company wants to declare dividend from general reserve, it has to comply with many conditions. However if company declares dividend from Profit & Loss a/c there are no restrictions.
Company can transfer General reserve to P&L by passing special resolution
Anupam Parashar & Co.
Ghaziabad
CA Final
View Details
Bharat Shah & Associates
Mumbai
CA Inter
View Details
Getmyca Consultant Pvt Ltd
New Delhi
CA Inter
View Details
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
CCI
Pro
CAclubindia
