Reserve and surpluses
Priyanka Chaturvedi (32 Points)
24 September 2020
Is free resevrves and reserve and surplus is same ?
4 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 September 2020
Reserves are the amounts set aside for future use.
Surplus is an excess gain which arises on a transaction. Example, surplus gain when currency is exchanged between USD and INR at a higher exchange rate from the date when purchased.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 24 September 2020
"Reserves and surplus" is a significant head on the liabilities side of the balance sheet forming part of the shareholders' funds.
"Reserves and surplus"includes Statutory and voluntary reserves ; capital and revenue reserves; and free and specific reserves.and also include security Premium ect..
“free reserves” means such reserves which, as per the latest audited balance sheet of a company, are available for distribution as dividend and which company can freely drawn.
Free reserves is also part of reserves and surplus.
"Reserves and surplus"includes Statutory and voluntary reserves ; capital and revenue reserves; and free and specific reserves.and also include security Premium ect..
“free reserves” means such reserves which, as per the latest audited balance sheet of a company, are available for distribution as dividend and which company can freely drawn.
Free reserves is also part of reserves and surplus.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 27 September 2020
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