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What is Reserve & Surplus? Plz give me with some Example.
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Reserves and surplusAt the end of an accounting period the
company may decide to transfer part of the profits to a
reserve and retain the balance in the profit and loss
account. The reserve created out of profits transferred
from profit and loss account is called general reserve. The
balance in the profit and loss account is called a surplus
and will be shown under this head in the balance sheet.
The company can use the general reserve for various
purposes including issue of bonus shares to shareholders
and payment of dividend when profits are insufficient.
The premium received when shares are issued at a premium
to the face value is shown under the head reserves and
surplus
| Is This Answer Correct ? | 378 Yes | 31 No |
Answer / rahul kumar
reserve means cetrain amount taken from the profit and loss
account to meet the sudden losses due natural calamities or
to pay the premimum to the shareholders when profits are
insufficient
The excess of income over expenditure is konown as
surplus
| Is This Answer Correct ? | 194 Yes | 34 No |
Answer / ashok
reserves & surplus means certain amount taken from the
profit and loss acount tro meet the sudden losses due
natuaral calamaties of to pay the premium
| Is This Answer Correct ? | 64 Yes | 34 No |
Answer / omkannan
Reserves & Surplus means some portion of amount has to be taken from Profit & loss account in order to meet sudden losses due to natural calamities or to pay bonus to the share holders when funds are in sufficient.
Surplus means excess money or income over the expenditure
| Is This Answer Correct ? | 13 Yes | 4 No |
Answer / khushi kabra
Reserves and surplus are mainted for future uncertainites by business . Eg: WACF (workmen accident compensation fund), BDR(bad debt reserve),depreciation reserve,p/l credit Etc.
| Is This Answer Correct ? | 16 Yes | 10 No |
Answer / saurav
res. & surplus is created for future necessities
| Is This Answer Correct ? | 35 Yes | 34 No |
Answer / vinay
The Total Net Movement of your Last year P& L. Is your
Reserve and Surplus. If dividend income and expense is
condidered in P& L or else you need to considered it from
you Balance sheet account.
| Is This Answer Correct ? | 44 Yes | 44 No |
Answer / amala
Reserve and surplus as a part of shareholder's fund. it is taken from profit to meet uncertain expenses. it is used to calculate Debt-Equity ratio to find out the firms ability to meet its long term indebtedness.
| Is This Answer Correct ? | 0 Yes | 3 No |
Answer / kichu jani na banerjee
Reserves means reservation of Profit which was separetly in BS libility side for future accident. Actualy reserve & surplus means in Pvt Ltd co. Net Profit after all expenses Taxes & other shere holder expenses.
| Is This Answer Correct ? | 11 Yes | 17 No |
Answer / ravichandra
Reserves& surplus, it is an appropriation profit. Reserves created increase the proprieties funds. it is created for future loss.
| Is This Answer Correct ? | 20 Yes | 33 No |
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