New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    According to Section 36 of the Code on Wages, 2019,

    what is the purpose of carrying forward excess allocable surplus or minimum bonus to the succeeding accounting years?
    A To invest in employee welfare programs Correct Answer Incorrect Answer
    B To distribute as dividends to shareholders Correct Answer Incorrect Answer
    C To utilize for the payment of bonus in subsequent years Correct Answer Incorrect Answer
    D To pay off company debts Correct Answer Incorrect Answer

    Solution

    Explanation: As per Section 36- (4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.

    Practice Next