what do you mean by accumulated profits? & what is it according to sec.2(22)e? plzzzzzz reply immediately and thanks in advance
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.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
CAclubindia
