In Profit and Loss Adjustments & Appropriations screen company can disclose the details of Profits distributed after Net Profit is arrived.
Net Profit = Gross Profit - Administration & Selling Expenses - Other Expenses - Taxes - Depreciation + Other Incomes.
To disclose the details of Profit & Loss Adjustments/ Appropriations
Go to Gateway of Tally > Display > Statutory Reports > MCA Reports > List of Accounts > Profit and Loss Adjustments & Appropriations > press Ctrl + Enter
In Profit and Loss Adjustments & Appropriations screen,
Net Profit as per Profit & Loss Account: Net Profit displayed in this field is captured from Profit & Loss A/c
Net Profit as per MCA - Taxonomy Element: Net Profit is displayed based on the mapping of MCA - Taxonomy Elements.
The Net Profit displayed in both the fields should be same to confirm that the books of accounts and the details disclosed in Instance Document are correct.
As different companies follow different methods to arrive Profit, difference in Net Profit may be found. Example: when a company has recorded all the adjustment/appropriation entries in books of accounts but are not mapped to generate XBRL Instance Document. In this case Net Profit as per Profit & Loss Account will be less than the Net Profit as per MCA Taxonomy Element.
Hence, while disclosing the Profit and Loss Adjustments & Appropriations details, companies can follow any one of the methods given:
If the company has already recorded all the Profit & loss adjustment transactions then, the adjusted values can be entered/specified for the appropriate Taxonomy elements manually. The values are entered manually will be considered only for Taxonomy elements and will not affect the books of accounts.
Example: ABC Company has already accounted the transfer of Rs. 12,00,000 to General Reserves. Hence, the value of Reserves is being entered manually in P& L Adjustment & Apportions.
On disclosure of all the Profit and Loss Adjustments & Appropriations the Profit/Loss as per MCA Taxonomy Elements and Books of accounts transferred to Balance sheet will be displayed.
Profit/Loss as per MCA Taxonomy Elements = Net Profit as per MCA Taxonomy Elements - Taxonomy Element amount (addition/Subtraction)
Profit/Loss as per Books of accounts transferred to Balance sheet = Net Profit as per Profit & Loss Account
Note: The Profit/Loss displayed in both the fields should be same to confirm that the books of accounts and the details disclosed in Instance Document are correct.
If there is any difference, the Difference amount will be displayed in Red.
If the company has not accounted the P& L Appropriations, to disclose such information for taxonomy elements and Books accounts,
Example: ABC Company wants to allocate Rs. 12,00,000 towards General Reserve. It has not accounted the allocation in Books of Accounts.
Navigate to the appropriate taxonomy element and click on F7: Create Voucher button or press F7 key to navigate to Journal Voucher to record the adjustments/ appropriations.
In Journal Voucher,
Debit - Profit & Loss A/c and enter the amount allocated in Amount field.
Credit - Reserves & Surplus ledger. on selection of Ledger Tally displays the Adjustment Type screen to select the Taxonomy elements towards which the value to be mapped. In this screen select the appropriate taxonomy element e.g. Appropriations General Reserve
All adjustments/appropriations have to be accounted using the ledger Profit & Loss A/c. If Profit & Loss A/c ledger is not used to account the adjustments, such transactions will be considered as normal adjustments and will not be displayed in Profit and Loss Adjustments & Appropriations screen.
Note: From Journal Voucher, Tally.ERP 9 will not allow the user to navigate to any other vouchers.
To navigate back to Profit and Loss Adjustment & Appropriations screen press Escape from Journal Voucher.
On accepting the voucher the allocated value will be displayed in Profit and Loss Adjustment & Appropriations screen as shown:
On disclosure of all the Profit and Loss Adjustments & Appropriations the Profit/Loss as per MCA Taxonomy Elements and Books of accounts transferred to Balance sheet will be displayed.
Profit/Loss as per MCA Taxonomy Elements = Net Profit as per MCA Taxonomy Elements - Taxonomy Element amount (addition/Subtraction)
Profit/Loss as per Books of accounts transferred to Balance sheet = Net Profit as per Profit & Loss Account - Taxonomy Element amount (addition/Subtraction)
Note: The Profit/Loss displayed in both the fields should be same to confirm that the books of accounts and the details disclosed in Instance Document are correct.
In this section, company has to disclose Basic and Diluted Earnings per share on the undistributed profits along with the information of average number of shares considered for calculating diluted earnings per share.
From Profit & Loss Adjustments and Appropriations screen, users can view the Journal Vouchers recorded using F7: Create Vouchers button.
To view Journal Vouchers recorded from Profit & Loss Adjustments and Appropriations, click on F8: Show Vouchers button or press F8 key.
Journal Voucher lists only those Journal Voucher which are recorded from Profit & Loss Adjustments and Appropriations report.
