Re: utilisation of reserves

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2016 Sir,
Please tell me
For what all purposes we shall utilize the following reserves?
1.Capital Reserve
2.Capital Redemption Reserve
3.Debenture Equalisation reserve
4.Dividend Redemption Reserve
5.Statutory Reserves
6.Revenue Reserve

Thanks in Advance

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

11 April 2016 1 . capital reserve from accumulated capital surplus by way of share premium, Profit on sale of FA utilised towards long term capital investment plan.
2.Capital redemption reserve can be utilised towards bonus issue of Shares or paying un issued shares.
3 . Debenture equalisation reserve used for payment of interest on debenture.

4debenture redemption reserve used for redemption of debenture only.
5 . Statutory Reserve is reserve created for payment of Statutory dues.
6 . Revenue Reserve is created out of profit it is issued to shareholders by way of dividend