why the reserves and surplus are shown negative balance of balance sheet sometimes?
if there is a loss means why it was shown in the reservesand surplus?? please tell me
PAT will be added to reserves in balance sheet.
So either profit or loss will be added to reserves and surplus.
If it is profit then it will be added to reserves
If it is loss then it will be substracted from reserves.
If a company incurring continuously losses then you may find negative balance in Reserves and Surplus
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