what do you mean by accumulated profits? & what is it according to sec.2(22)e? plzzzzzz reply immediately and thanks in advance
2 Replies
Amir
(Learner)
(4016 Points)
Replied 04 January 2010
Hi santhoshi,
Accumulated profits in general means the balance of general reserve, profit /loss A/c,etc
interms of sec 2(22)(e), ACCUMULATED PROFITS MEANS BALANCE IN ANY FREE RESERVE WHICH WAS CREATED BY DEBITTING THE PROFIT/LOSS ACCOUNT AND INCLUDES BALANCE IN PROFIT/LOSS ACCOUNT...
EG:- APART FROM PROFIT AND LOSS A/C BALANCE
1) GENERAL RESERVE
2) DIVIDEND EQUILIZATION RESERVE..
3) RESERVE FOR CONTINGENCIES.
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