Please Help: General Reserve - Clarifications
Posted Date : 21-Jun-2013 , 10:42:43 am | Posted By AMAR KUMAR
Dear Members,
Can General Reserve be in negative? If Yes please specify the cases in which General Reserve be in negative.
Can General Reserve be in negative? If Yes please specify the cases in which General Reserve be in negative.
Category : Accounts | Answers : 3 | Comments : 4 | Hits : 434
Answers
Answer By: Vikky Kumar Jha
Yes it can be. If GR having negative balance it means the business has a cumulative loss.
Answer By: Vikash Kumar Jha
No
Answer By: Vaneet Gupta
Yes, On account of accumulated losses.
Comments
chunchun kumar
29-Jun-2013 , 03:00:19 amNO, how can u transfer Loss of PL A\c into general reserve?
CA MANI
29-Jun-2013 , 11:11:20 amno. it can never be negative. general reserve is created by setting aside amount so that it can be distributed for distributing profits when future profit is low. its not a part of equities
CA MANI
29-Jun-2013 , 11:11:21 amno. it can never be negative. general reserve is created by setting aside amount so that it can be distributed for distributing profits when future profit is low. its not a part of equities
Vaneet Gupta
26-Aug-2013 , 11:04:12 amYeas on account of Cumulative losses from business