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What is reserves
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Answer / navin kumar
A reserve is profits that have been appropriated for a particular purpose. Reserves are sometimes set up to purchase fixed assets, pay an expected legal settlement, pay bonuses, pay off debt, pay for repairs and maintenance, and so forth.
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from profit some amount will transfer to Reserve account to meet the future sudden events
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Should we take the taxes in to P& L A/c.
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Audit 
