Page 332 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Unit 13: Final Accounts for Companies

6. (1) Except in the case of the first profit and loss account laid before the company after Notes
the commencement of the Act, the corresponding amount for the immediately
preceding financial year for all items shown in the profit and loss account shall also
be given in the profit and loss account.
(2) The requirement in sub-clause (1) shall in the case of companies preparing quarterly
or half-yearly accounts, relate to the profit and loss account for the period ended on
the corresponding date of the previous year.

At the time to preparation of Profit and Loss A/c of the company, the following
guidelines should also be kept in mind.

Self Assessment

Choose the best alternative:

6. Which one of the following does not relate to Profit and Loss Appropriation A/c?
(a) Contribution to General Reserve
(b) Proposed Dividend
(c) Provision for Depreciation
(d) Interim Dividend

7. Which of the following does not include the divisible profits?
(a) Revenue reserve
(b) General reserve

(c) Capital reserve
(d) Subsidies and credit balance of P./L. A/c
8. Advance payment of tax is shown:
(a) P. & L. A/c.
(b) Below the line

(c) Liabilities side of balance sheet
(d) Assets side of balance sheet
9. Employee provident fund is a:

(a) Liability
(b) Provision
(c) Loan
(d) None for the above
10. Dividend is calculated on:

(a) Called up capital
(b) Paid up capital
(c) Paid up capital & calls in advance

(d) Subscribed capital

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