Reserve and surplus rising more than P&L for year

This query is : Resolved

Abhi Singh (Querist)
Follow

24 December 2019 Dear All, kindly let me know if below scenario is possible:

Beginning of year (R&S account): 10 lac
P&L for year: 15 lac profit
Dividend: 0
End of year (R&S account): 2.5 crore

If so, what can lead to this situation?
Thank you in advance.

Puja Sharma

Puja Sharma (Expert)
Follow

24 December 2019 1. There must be error in some figures or
2. The sum total must have been wrongly expressed as figures in crores instead of lacs

Abhi Singh

Abhi Singh (Querist)
Follow

24 December 2019 Hi Puja,
The numbers are straight from comp's balance sheet. And I have checked the units also, since the final asset and liab. match, I believe this is not an error but actual representation of financials. I am just unable to understand what has been incl. in R&S to increase it by such large amount.

Thank you.

Upgrade to CAclubindia Pro. Subscribe Now!