ALLInterview.com :: Home Page            
 Advertise your Business Here     
Browse  |   Placement Papers  |   Company  |   Code Snippets  |   Certifications  |   Visa Questions
Post Question  |   Post Answer  |   My Panel  |   Search  |   Articles  |   Topics  |   ERRORS new
   Refer this Site  Refer This Site to Your Friends  Site Map  Bookmark this Site  Set it as your HomePage  Contact Us     Login  |  Sign Up                      
Google
   
 
Categories >> Accounting >> Accounting General
 
 


 

 
 Audit interview questions  Audit Interview Questions (428)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1904)
 Accounting General interview questions  Accounting General Interview Questions (2829)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4369)
Question
Why Reserves and Surplus are shown on the liabilities side of 
the balance sheet.? justify your answer.
 Question Submitted By :: Accounting-General
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
An important question why reserves and surplus are shown on
the assets side of the balance sheet. To answer this question
lets know about the principle of accounting "Convention of
conservatism" states that "anticipate no profits but for
provide all possible losses .Therefore reserves and surplus
are so created to meet the contingencies of the business .Here
contingencies are those obligations which may or may not to be
paid .However, in order to pose any future liability reserves
are created so that a business may not hamper on such events
and hence it the liability for the business.
 
Is This Answer Correct ?    21 Yes 6 No
Zam
 
Answer
# 2
reserves and surplus are shown into liability side of the
financial statiment, since reserve is the money set aside
from the capital for future use hence defining surplus as a
debit in the business thus attributing to its liabiltiness,
 
Is This Answer Correct ?    8 Yes 4 No
Imran
 
 
 
Answer
# 3
reserve and surplus are shown liabilities side because the
percentage of net profit portion is keep aside for further
losses due to whatever so that time this portion profit
which is used in losses.
 
Is This Answer Correct ?    2 Yes 0 No
Nilesh
 

 
 
 
Other Accounting General Interview Questions
 
  Question Asked @ Answers
 
What is meaning of Corporate Assessee & Non Corporate Assessee? Corporate Market & Non Corporate Market? IBM 7
What is the meaning of Central Excise and State Excise Duty & also want to know differnec between them Genpact 2
what is forex management?   1
Q. Journalise The fllowing Transction.. 1. Case Sales Rs. 50000   2
What do you mean by deffered expenses? American-Express 1
what is asset and what is liability ? why in B/S both will tally at the of the accounting yr or financial yr as the case may be ?   1
What is the diffrence between General Exp. & Misc. Exp?   5
what is contigent liability and where we shown in balance sheet   2
What do you mean by the term Accounts Payables/ Receivables?   4
How to calculate TDS on Directors Remuneration if director's age is around 35 years and salary is 59000/- per month. please suggest me with complete detail.   1
What is unabsorbed depreciation ? how its treatment different in taxation vis-a-accounting? D&B 1
If ABC security service provider monthly bill for the month of Jan is Rs.2,00,000/- including TDS 2% and Service Tax 12%, Edu.Cess 2% and SHE Cess 1% what is the journal entry. ABC 3
 
For more Accounting General Interview Questions Click Here 
 
 
 
 
 


   
Copyright Policy  |  Terms of Service  |  Articles  |  Site Map  |  RSS Site Map  |  Contact Us
   
Copyright 2013  ALLInterview.com.  All Rights Reserved.

ALLInterview.com   ::  KalAajKal.com