Doubt on Reserves & Surplus

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sankar ponnan (Querist)
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18 November 2021 Sir / Mam

The balance sheet of a Pvt Ltd Co, shows the reserves and surplus balance of Rs.7,75,000/- at the end of year?

It means the equal amount should be in bank at the end of year?

Or

If not, It is shown as mere record to adjust the loss in future?

Kindly please advise us

thanks in adv

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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18 November 2021 Reserves and surplus are the total amount of maintained earnings reported as a component of Shareholders Equity and set aside by the company for specific objectives such as purchasing fixed assets, paying legal settlements, repaying debts, or paying dividends, and some others.

The same amount need not be lying in bank.

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