Accumulated Profits/Losses

Devendra (Chartered Accountant) (4775 Points)

04 November 2010

What do you mean by Accumulated Profits/Losses?

Regards,

Devendra

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CA Raj K Agrawal (Teaching & Practice) (944 Points)
Replied 05 November 2010

Originally posted by : Devendra
	What do you mean by Accumulated Profits/Losses? Regards, Devendra

Accumulated profit refers to retained earning i.e the earning which has not been distributed to shareholders and kept as part of Reserve.

Security Premium is not accumulated profit
Accumulated Profit is to be taken upto the date of disctribution. However for sec. 2(22)(c) of Income Tax Act profit upto the date of liquidation is taken.

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