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Why in reserve and surplus 16000 amount is cr. To reserve and srplus why not 23000. And also why dividend paid is shown on Dr side of reserve and suplus it can also be show to financing activity

Kalash Ojha

CA Inter

★ 465

27-Sep-21 22:26

406

Answers (3)

In cash flow you would show dividends paid as financing activity. It is debited to reserves because when dividend is paid, there is a reduction in reserves of the company.

CA Suraj Lakhotia

Admin

28-Sep-21 10:17

Why in reserve and surplus 16000 amount is cr. To reserve and srplus why not 23000??

Thread Starter

Kalash Ojha

CA Inter

★ 465

28-Sep-21 10:38

Thread Starter

Kalash Ojha

Why in reserve and surplus 16000 amount is cr. To reserve and srplus why not 23000??

Profit for the year is 16,000. 23,000 is profit before taxes.

CA Suraj Lakhotia

Admin

28-Sep-21 10:45

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