Question

1Protits
From the following particulars taken from Director's Report of a company, show how the profit
appropriations be recorded for the year ended 31st March, 2011. The net profit for the year ended
31st March, 2011 after providing for depreciation and taxes, is 37,22,994 to which should be
added the sum of 5,61,984 being the balance brought forward from last year, thus making a
total of 42,84,978. For the year 2010-11 the Directors recommended that the amount may be
dealt with as follows:
(i) To pay a dividend for the year 2010-11 @ 10% p.a. absorbing* 27,50,000,
(ii) To pay a bonus for the year 2010-11 @ 1% p.a. absorbing 2,75,000,
(iii) To transfer to general reserve 7,00,000 and
(iv) To carry forward to the next year's A/c 5,59,978.
The general reserve had a balance of 3,00,000 on 1st April, 2010.
Ans. Balance of Profit and Loss Appropriation State​

Answer 1

Answer:

To carry forward to the next year.