saritha (fgvf) (534 Points)
15 June 2009pl suggest the solution for the following case
the company doesnot hv revenue
it has only operating expenses.
is it required to prepare profit & loss A/C or is it enough to prepare only statement of expenses and prepare bal sheet.
if it is required to prepare P&l A/C as per which standard is is required to be prepared.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 16 June 2009
It is necessaory to prepare P&L as a practice. AS does not say anything abt P&L but speak only of B Sheet.
CA Madhumita Binani
(Executive Accounts (SERVICE))
(389 Points)
Replied 17 June 2009
yes, as per the reuirements of the companies act, it is necessary to prepare the Profit and loss account, even though the company may nto have any profit.... The operating expenses to be shown and the loss should be carried to Accumulated Losses
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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