Net worth

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 Dear Mr. Suraj,

My quarry is related to CARO clause (x). To consider the net worth n/s 2(29),whether accumulated lossess be reduced from capital and free reserve or not? please

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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13 June 2013 Debit balance can be reduced only from Revenue Reserves, if any. It cannot be deducted from Capital.

Refer Page 46 of the below link
http://220.227.161.86/24157comp_aapc_p3finalnew_cp8.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 Dear Mr. Suraj,

my quarry is related to CARO clasue (x). To calculate net worth u/s 2(29)whether we deduct accumulated losses from capital and free reserve or not? In other words whether we compare accumulated lossess with capital+free reserve-accumulated losses?

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CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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13 June 2013 Networth would be Capital plus reserves less accumulated losses.

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 Thanks Mr. Suraj