Practicing Success
Where will the profit and loss have shown which is disclosed by the accounts of a company? |
Shown under the head of ‘Current liabilities and provisions Shown under the head ‘Reserves and Surplus Transferred to share capital account None of these |
Shown under the head ‘Reserves and Surplus |
The correct answer is option 2- Shown under the head ‘Reserves and Surplus. Reserves and Surplus are required to be classified as:
NOTE- ‘Debit’ balance of statement of profit and loss shall be shown as a negative figure under ‘Surplus’ head. The balance of “Reserve and Surplus” after adjusting negative balance of Surplus, if any, shall be shown under “Reserve and Surplus” read even if the resulting figure is ‘negative’. |