Profit & depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2012 Hello,

Pls explain the following points.

Accumulated profits
past profits
arrears of depreciation and how it is found out?

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
Follow

15 May 2012 Accumulated profits mean the profits which have been accumulated from past years i.e., Net total of all the profits earned by a company in the past.

Past profits again mean the profits earned in the past years.

Arrears of dep mean that Depreciation has not been provided for in the profit and loss account which has to be done mandatorily. It is calculated by taking depreciation rates as per company's act and as per income tax act as per the requirement.