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what is the effect of surplus in p&l account? or what is its
significance



what is the effect of surplus in p&l account? or what is its significance..

Answer / venkatesh

In the company has surplus profit and that is reflected in
he p&l a/c then the company can use transfer it to the
reserve and use it for future developments. Also the company
can declare dividend or bonus to its shareholders or employees.

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