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

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

okeowo onipede
by okeowo onipede , facilities management , qbg service

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

 

Mohammed Mohammed
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.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

According to the UAE law 

Firm must  transfer10% of the Actual Net profit to Statutory Reserve

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