07 December 2010
Sir, Can anybody tell me that in a private company what amount of net profit is to be transferred to General reserve every year if the Company is not declaring dividend during that year? This question is asked because we want to issue bonus shares in this company.
08 December 2010
There is no statutory requirement to transfer to General Reserve. Even you can hold all your surplus in P&L (accumulated) a/c and there is no bar and you can issue Bonus shares too as well out of it
CAclubindia
