AKSHIT MALHOTRA (C.A Final Student) (1337 Points)
04 June 2012
MY QUESTION IS WITH RESPECT OF THE TOPIC "CASH FLOW STATEMENT"
IF IN THE BALANCE SHEET GENERAL RESERVE IS Rs 50,000 IN 2007 & Rs 40,000 IN 2008 WHAT WILL BE IT'S TREATMENT.
THANKS A LOT.
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 04 June 2012
dear aksh*t,
in indirect method of cash flow statement you can take such differnce to be PAT for the current year subject to adjustments
cheers
ganesh agarwala
AKSHIT MALHOTRA
(C.A Final Student)
(1337 Points)
Replied 04 June 2012
BUT WHEN IT IS INCREASED WE ADD IT TO CALCULATE NET PROFIT BEFORE W.C CHANGES.
I THINK WE NEED TO DO THE SAME EXCEPT IT WILL BE REPRESENTED BY BRACKET
AM I RIGHT ?
Tushar
(Service)
(159 Points)
Replied 06 June 2012
Yesterday only I got the same kind of question from the reference books of accounts. I got the answer correct by transferring general reserve to profit & loss a/c.
It seems that it may work. But I do not have any fundamental for that. I am not sure whether we can transfer general serve to p&l a/c.
CAclubindia
