How a power utility represent the expenditure incurred on account of social responcibility Cost. I mean that whether the same will show it above or below the profit & loss account. This is urgent. Please help me to close the books.
Sandip Kumar Sen (Sr.Manager(F&A)) (114 Points)
30 April 2009How a power utility represent the expenditure incurred on account of social responcibility Cost. I mean that whether the same will show it above or below the profit & loss account. This is urgent. Please help me to close the books.
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 30 April 2009
profit & loss account (Above the line )
CA P KARTHIKA
(Chartered Accountant)
(715 Points)
Replied 04 May 2009
Hi sandip,
Mostly the expenditures spent for administration, office, sales, marketing any other provisions for dues and other government dues appear in P&L above the line. And items in the nature of appropriations resulting effect in balance sheet like Transfer to General reserve, Dividend equalisation reserve, provison for dividend, etc.. will appear in P&L below the line (latter has resulting effect in Balance Sheet).
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