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Cash flow statements
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Y they r transferring to general reserve ???
Answers (1)
It's actualy revenue reserve, not general reserve. And they are adding the increase in balance of revenue reserve to balance of difference in P&L balance assuming that amount was transferred from profit of the year. In this question, we are not given net profit as per Statement of P&L. So, starting point is taking the difference in P&L A/c as appears in Notes to Accounts.
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