Company accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2010 PROFIT FOR YEAR 2008-09 RS 10000 TRANSFERED TO RESERVES AND SURPLUS A/C.NOW IN 2009-10 IT IS SHOWING OPENING BALANCE .WILL IT CONTINUE AND THIS YEAR PROFIT WILL BE ADDED TO IT ? HOW THIS OPENING BALANCE IN RESEVES AND SURPLUS OF PROFIT IS ADJUSTED IN PVT LTD COMPANY.PLZ EXPLAIN.

Ca Aashish Upadhyay

Ca Aashish Upadhyay (Expert)
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29 August 2010 kindly elaborate more on this!

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 August 2010 Closing balance of last year would become opening balance of current year and current years profit will be transferred to this account.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2010 PLZ TELL ME SIR THAT - PROFITS OF EVERY YEAR IS CARRIED FORWARD IN RESERVE AND SURPLUS ?RESERVE & SURPLUS WILL BE INCREASED EVERY YAER? WHERE WILL IT BE USED?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 August 2010 The balance will increase and can be used to declare dividend or write off any extraordinary expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2010 THANX SIR

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2010 SIR I ALSO WANT TO ASK ABOUT DTA OR DTL.DURING YEAR 2008-09 COMPANY HAD DTA OF RS 700 WHICH IS SHOWN IN OPENING BALANCE.THIS YEAR IT IS HAVING DTL OF RS 5000 . WILL THE BALANCE RS 4300 WILL BE SHOWN IN CURRENT LIABILITIES THIS YEAR OR BOTH WILL BE SHOWN SEPERATELY.
THIS DTA OR DTL IS ADJUSTED IN YEARS TAX LIABILITY?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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31 August 2010 The net balance of Rs. 4300 will be shown under sources of funds below loans.

In the notes to accounts disclosure of computation of DTA & DTL needs to be shown separately.

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