Interested to Buy Any Domain ? << Click Here >> for more details...
What is Reserve & Surplus? Plz give me with some Example.
- 10 Answers
- 189046 Views
- Bank Of India, Genpact, iGate, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
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 |
what is the difference between back order and partial shipments?
How to posting employer contribution
can any body tell me the procedure to learn accountancy with easy tips.i.e., layman accounting policy and rules of debit and credit.
How to determine the market value of a company and what factors are relevant to determine if the company is a viable investment in the long term?
Who is considered the father of accounting?
will preference share holders will have voting right?wat is difference between eqity holders and preference share holders
some example of prepaid expance
Tell me what is working capital?
what is SEC?
v, An amount spent for inaguration of new factory building is A, revenue expenditure B, capital expenditure c, prepaid expenditure d, none of the above
What methods do you use to discover sales opportunities?
While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs.50,000. As a result (a) Previous year’s profit is overstated and current year’s profit is also overstated (b) Previous year’s profit is understated and current year’s profit is overstated (c) Previous year’s profit is understated and current year’s profit is also understated (d) Previous year’s profit is overstated and current year’s profit is understated
Audit 
