What is meant by opening balance of profit and loss account Does it includes the surplus amount retained after paying - Accountancy - Cash Flow Statement

Question

What is meant by opening balance of profit and loss account Does it
includes the surplus amount retained after paying salaries
commissions and dividend to shareholders ?

Neha Chopra · Accepted Answer

Dear Student

Opening balance of profit and loss account is the amount left over
in profit and loss account from previous accounting periods, simply
Profit which is not transferred to reserves and remained in profit
and loss account only shall be opening for the current year and in
this opening balance, current years profit shall be added subject
to other appropriations

Regards

What is meant by opening balance of profit and loss account Does it includes the surplus amount retained after paying salaries commissions and dividend to shareholders ?