Jiten (Audit Manager) (63 Points)
17 September 2013Dear Fellow Colleges,
This is during a statutory audit of a public limited company, which has incurred a huge losses during the FY 12-13 which even exceeds the accumulated reserves of the Company during past many years. The question is how to show these losses under appropriate head in the new format of Schedule-VI. If it is taken under Reserve & Surplus , it will be a negative figure under the same head.
J P SAHOO
Samantaray & Co.
Chartered Accountants
Deepak Gupta
(CA Student)
(15922 Points)
Replied 17 September 2013
As per Revised Schedule VI, Debit balance of Statement of P&L shall be shown as a Negative Figure under the head ‘Surplus’.
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Similarly, the balance of ‘Reserves & Surplus’, after adjusting Negative balance of Surplus, if any, shall be shown under the head ‘Reserves & Surplus’ even if the resulting figure is in the negative.
Ritzz
(CA Final - Article )
(365 Points)
Replied 19 September 2013
| Originally posted by : |)eep @ k Gupt/\ | ||
 |
As per Revised Schedule VI, Debit balance of Statement of P&L shall be shown as a Negative Figure under the head ‘Surplus’. . Similarly, the balance of ‘Reserves & Surplus’, after adjusting Negative balance of Surplus, if any, shall be shown under the head ‘Reserves & Surplus’ even if the resulting figure is in the negative. |
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