In Profit and Loss Adjustments screen, a company can disclose the details of Profit utlisation after Net Profit is arrived.
To disclose the details of Profit & Loss Adjustments,
Go to Gateway of Tally > Display > Statutory Reports > MCA Reports(2012) > List of Accounts > Profit and Loss Adjustments > press Ctrl + Enter
In Profit and Loss Adjustments screen,
Net Profit as per Profit and Loss Account: Net Profit displayed in this field is captured from Profit & Loss A/c
Net Profit as per MCA - Taxonomy Elements: 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 at Profit, difference in Net Profit may be found.
Example: A company has recorded all the adjustment entries in the books of accounts but has not mapped to Taxonomy elements to generate XBRL Instance Document. In this case, Net Profit as per Profit and Loss Account will be less than the Net Profit as per MCA - Taxonomy Elements.
Hence, while disclosing the Profit and Loss Adjustments 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 that are entered manually will be considered only for Taxonomy elements and will not affect the books of accounts.
Example: ABC Company has already accounted Tax paid - Rs. 51,500. Hence, the value of Current Tax is being entered manually in P& L Adjustment & Apportions.
On disclosure of all the Profit and Loss Adjustments, the Total profit (loss) for period (as per MCA Taxonomy Element) and Total profit (loss) for period as per Books of Accounts transferred to Balance sheet will be displayed.
Total profit (loss) for period (as per MCA Taxonomy Element) = Net Profit as per MCA Taxonomy Elements - Taxonomy Element amount (addition/Subtraction)
Total profit (loss) for period 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 Adjustments, to disclose such information for taxonomy elements and Books accounts,
Example: ABC Company wants to allocate Rs. 51,500 towards Tax Payable. The same has not been accounted for in the 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.
In Journal Voucher,
Debit - Profit & Loss A/c and enter the amount allocated in Amount field.
Credit - Tax Payable ledger. On selection of the Ledger, Tally displays the Profit and Loss Adjustments sub-screen to select the Taxonomy elements towards which the value to be mapped. In this screen, select the appropriate taxonomy element e.g. Current Taxes
The completed Journal Voucher Creation screen appears as shown below:
All adjustments 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 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 screen as shown:
On disclosure of all the Profit and Loss Adjustments, the Total profit (loss) for period (as per MCA Taxonomy Element) and Total profit (loss) for period as per Books of Accounts transferred to Balance sheet will be displayed.
Total profit (loss) for period (as per MCA Taxonomy Element) = Net Profit as per MCA Taxonomy Elements - Taxonomy Element amount (addition/Subtraction)
Total profit (loss) for period 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, the company has to disclose any Gain or Loss that is recognised on disposal of assets or settlement of liabilities determinable to a discontinuing operation.
In this section, company has to disclose Basic and Diluted Earnings per share on the undistributed profits, Basic and Diluted Earnings per share before extraordinary items along with the information of Nominal Value of per equity share.
Journal Vouchers for recording Adjustment entries can be created from Profit and Loss Adjustments screen by pressing F7 or clicking on Create Vouchers button. For more information, refer Create Vouchers
Journal Vouchers recorded from Profit and Loss Adjustments (only) screen can be viewed by pressing F8 or by clicking on Show Vouchers button.
The status of completion of the Profit and Loss Adjustments report can be marked as Complete or Incomplete by pressing F9 or clicking on the button F9: Status. The same will appear in the Status Column in Additional Details screen.
Validate option can be used to verify if the necessary details have been entered in those fields which are considered mandatory. The mandatory fields which have been left blank are displayed in Red. The user can then enter the appropriate values.
To validate Profit and Loss Adjustments, click V: Validate button or press Alt + V.
To view any errors identified during the Validation process, click S: Show Error or press Alt +S. Press Escape to return to Profit and Loss Adjustments screen.