plz explain the meaning of free reserves... nd isme kon se reserves include hotge hai...???
thnx....
Meaning of free reserves..
binny (student) (42 Points)
04 January 2012
7 Replies
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 04 January 2012
free reserves are those reserves which are available for distribution as dividends.p*l,general reserve are included in Free Reserves.let others give opinin as to any other reserves can be included in Free reserves ?
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 04 January 2012
Binny ji,
"Free reserves" means those reserves which, as per the latest audited balance sheet of the company, are free for distribution as dividend and shall include balance to the credit of the securities premium account bat shall not include share application money. Free reserves are those which are not made for some specified purpose like Debenture redemption reserve of revaluation reserve.
CS Vijay Daxini
(At Practice)
(732 Points)
Replied 04 January 2012
i agree with ketan..n credit to P&L account is also included in general reserve
Vineet Kumar Sharma
(Chartered Accountant)
(316 Points)
Replied 05 January 2012
The remaining balance of Reserve created for specific purpose after utilising it for that purpose is also a free reserve.
For eg:-
1. Balance remained after utilising the Sinking Fund (Reserve created for Debenture redumption) is Free Reserve.
Vineet Kumar Sharma
(Chartered Accountant)
(316 Points)
Replied 05 January 2012
The remaining balance of Reserve created for specific purpose after utilising it for that purpose is also a free reserve.
For eg:-
1. Balance remained after utilising the Sinking Fund (Reserve created for Debenture redumption) is Free Reserve.
Vineet Kumar Sharma
(Chartered Accountant)
(316 Points)
Replied 05 January 2012
The remaining balance of Reserve created for specific purpose after utilising it for that purpose is also a free reserve.
For eg:-
1. Balance remained after utilising the Sinking Fund (Reserve created for Debenture redumption) is Free Reserve.
Roshan motwani
(student)
(21 Points)
Replied 26 October 2013
Bal in sinking fund reserve after deb redemption is it a free reserve? coz it wont qualify for free reserve in last audited b/s.... pls rply
Recent Topics
- Loss adjust
- GST registration -rent Agreement
- Study partner for CA Final- Jan 26
- Sir, ITC is not showing in GSTR-3B, what to do
- Capital Gains on Industrial Property...
- While making correction in form-26QB getting - Maj
- Late interest penalty of missed invoice forgot to
- LONG TERM CAPITAL GAIN ON HOUSE
- WOS in Mauritius, LRS,Accounting
- AP of Business under gst
Related Threads
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
