How many % Transfer from Retained Earnings to Statutory Reserve in Finalization of books of account of Partnership firm?

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Posted by:
Ahmed Kamel
03-July-2013

Annual audit closing of Firm, Net Profit showing in Trial Balance is AED28930. As per this case How many Amount we can transfer to Statutory Reserve,10% of the Actual Net profit or more. Please give an Answer

Accounting Auditing Financials

Question added by ANI GOPALAKRISHNAN , Accountant , Power International Facilities Management
Date Posted: 2014/07/14

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4 Answers

by Abuhashima Ruby , Senior Associate - Audit & Assurance , Dar Alnuzum Public Accountants

As per the companys' law no 2 of 2015 (UAE Company's' law), The limited liabilities companies is required to reserve 10% of the annual net income as a statutory reserve which is not subject to distribution or withdraw. The reserve can be ceased when reaches 50% of the capital of the company .

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by okeowo onipede , facilities management , qbg service

THE LAW OF UAE IS10 OF THE ACTUAL NET PROFIT TO STATUTORY RESERVE

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by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

If net profit is directly reflected in Trail Balance itself then we dont need to prepare financial statements. As per ur question , profit directly reflecting in TB itself. Is it possible in firm accounting ? As per UAE it is10% net profit. It may be suspended after reaching50% share capital amount.Feel free to comment.

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