02 May 2022
In the profit and loss account of bank's, the previous year profit brought forward is mentioned below the current year profit and then it is factored in current year profit. Why this? .Previous Year profit should have been credited to Reserves and surplus last year only, then why is being brought in current year profit and loss account?
03 May 2022
This is as per Banking regulations balance sheet format. Instead of crediting in reserves and surplus it will be accumulated in profit and loss account shown in reserves and surplus. Schedule under Balance in profit and loss account. In the profit and loss appropriation account earlier year balance profit is brought down and added with current year profit and transfer to statutory reserves and dividend has to be made and balance carried over to next year.
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