Answer Posted / gangadhar
A secret reserve is created by the following methods:
1. By under valuation of assets much below their cost or
market value, such as investment, stock in trade, etc.
2. By not writing up the value of an asset, the price of
which has permanently gone up.
3. By creating excessive reserve for bad and doubtful debts
or discount on sundry debtors.
4. By providing, excessive depreciation on fixed assets.
5. By writing down goodwill to a nominal value.
6. By omitting some of the assets altogether from balance
sheet.
7. By changing capital expenditure to revenue account and
thus showing the value of assets to be less than their
actual value.
8. By overvaluing the liabilities.
9. By the inclusion of fictitious liabilities.
10. By showing contingent liabilities as actual liabilities
Is This Answer Correct ? | 35 Yes | 2 No |
Post New Answer View All Answers
Tell something about MGNREGA?
What is the difference between unemployment and underemployment?
What are Non Performing Assets?
What Are Registered Debentures?
Where have you saved money, handled more with less or found other ways to cut cost or increase productivity?
In the industrial field, what are the different banking software applications present?
Do you think Digital Banking will help the masses in country like India?
What is the difference between private bank and a nationalized bank?
Explain the concept of finance accounting?
What do you consider your most significant strengths?
Where do you see the Euro in 2018?
What is a ledger account?
How is SBI different from other banks?
What according to you should the government do to eradicate poverty?
What is dcf?