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
SKAA & Associates
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CA Inter
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