Reserves and Surplus
Reserves and Surplus refer to the portion of a company's profits that are set aside for specific purposes, rather than being distributed as dividends to shareholders. These funds are created to strengthen the financial position of the company, to meet future contingencies, and to reinvest in the business. They are part of shareholders’ equity on the balance sheet and can be classified into two main categories: Reserves and Surplus.
### Reserves
Reserves are the funds that a company sets aside for a particular purpose, and they are usually not available for distribution as dividends. They may be created for specific or general needs. A company can create a reserve by appropriating a portion of its profit. There are different types of reserves:
1. General Reserve: These reserves are created without any specific purpose. They are kept to strengthen the financial position and provide flexibility in case of unforeseen needs. For example, if a ________ _________ _______ ______ ________ ____ ___ _________ _______ _______.
_____ _____ ___ _______ ____ ___ ____ ______.
_______ ______ __________ ___ _________ ________.
_____ ____ ________ _____ __________ ______ ______ ______ ____ _____ _______.
___ _____ _______ _________ ______ _____ ________ ____ ______ ____ ____ __________.
________ __________ ________ __________ _____ ______ ____ ___ ____ ____.
_____ __________ _________ ___ _______ _______.
__________ ______ ___ _______ _____.
_____ ________ ____ ______ ___ __________ ______ ______ ___ ______ _________ ____.
_____ __________ ____ _____ ___ ___.
________ _______ __________ ___ _________ ________.
__________ _________ ________ __________ ______ __________.
_____ _____ _________ _______ ___.
___ _______ _______ _______ ___ __________ __________ ____.
__________ __________ ______ ________ ____ ____ _____ ____.
______ _________ ______ __________ _______ ____ _________ _____ ____ ___ ____.
_____ ___ _________ _________ ______ _____ ______ ______ ___ __________ _____.
________ ________ ____ _______ _________ _________ _______ _______.
_________ _____ ________ ________ _____ _________ _________ ______ ________ _____ ________ ______.
_______ _________ ____ ___ __________ ____ _________ ____.
______ ________ _____ ___ __________.
___ ______ _______ ____ _______ ___ _________ ________ ________ ____ _____ ___.
________ ____ _________ _____ ____ ________ _____ ________ _______ ___.
____ ___ ___ _______ __________ ____ ______ ______ __________ ___ ___ ___.
____ ________ ________ _____ _____ ________ ___ ________.
________ _______ _________ ____ ____ ______ _____ _______ ___.
_____ __________ ______ ______ ______ _______ ______ _______ _________ _______ __________ ________.
___ ___ ____ _________ __________ __________ ______ _______ _____.
_________ ____ ________ _________ ___.
_______ _______ ________ ________ __________.
___ __________ __________ _____ ______ ___ _______.
________ ____ _____ ____ ___ _______ ____.
_____ ___ _______ ___ ________ ______ _____ _________ _______ ______ _____ ___.
_____ ______ ____ ________ __________ __________ ________ _________.
_________ _____ __________ ________ ______ ________ __________ __________ _____.
___ ___ ______ _______ ____.
____ ________ ___ __________ ___.
_______ __________ ____ _______ ______ ____ __________ __________ _______ __________ ____ _____.
__________ _________ ____ _________ _______ _____.
_______ ________ _____ _____ _____ ________.
_____ ____ ______ _______ ______ ______ _____ ___ ______ ______.
_________ __________ ______ ________ ____ _________ ______ ________ ______ ____ ________.
_________ _________ ____ ___ ________ ________ ________.
_____ _____ _____ _______ _______ ___ ____ ____.
___ __________ ________ _________ ____ __________ ___ __________ _________ ___ _____ ______.
_____ ______ ______ _______ _____ ______.
______ ______ _________ ____ _________ _______ ___.
____ ______ ___ ________ ___ __________ _____ _____ ______ ___ _______.
______ ______ ____ ___ _______ _________ ______ ________ ________ ____ ______.
_____ _________ ____ __________ ____ __________ ________.
____ _____ ________ _____ ________ __________.
__________ __________ ______ ___ ______ ________ ____ _________.
__________ _________ ____ _______ ____ _____ ____ ________ ___ ________.
______ ________ __________ __________ _______ _____ ________ ____ ______ _____ _____ ___.
________ __________ _____ ______.
Get Full Answer on WhatsApp