DevyaniDevyani asked 1 year ago
2 Answers
RaviRavi Staff answered 1 year ago

no they can be used only if there are insufficient or no profits, because even if you are planning to withdraw you have to use P&l first

DevyaniDevyani answered 1 year ago
So, it means that dividend shall be paid in following order:

CY's profits
then P&L Appro. A/c
and finally free reserves

We can use P&L Appro. A/c and free reserves only when insufficient profits are there