You record on the debit side an amount of 5000 that should be transferred to the general reserve account.
General reserve account cannot be used for purchases of building as general reserve accounts is fixed for some limited kind of transactions like
debit reserve accountcredit cash / bank
[Debit] Net income account [Credit] General Reserves
First of all general reserves need to be converted into cash by issuing new shares and then that cash can be used to purchase building.
Reserves always created from profit. Therefore the Journal entry will be for creating reserves Dr Profit & Loss A/c CR Reserve A/c
General reserve account cannot be used for purchases of building as general reserve accounts is fixed for some limited kind of transactions like
debit reserve accountcredit cash / bank
[Debit] Net income account [Credit] General Reserves
First of all general reserves need to be converted into cash by issuing new shares and then that cash can be used to purchase building.
Credit your capital account, debit the freehold property account
Reserves always created from profit. Therefore the Journal entry will be for creating reserves Dr Profit & Loss A/c CR Reserve A/c
If the inventory has some value then it must be entered in a new general ledger expense account and have a new contra asset account for the items. Enter the estimated value as a debit to the inventory obsolescence account and then credit it to the inventory reserve account.
Debit reserve accountCredit cash / bank
Reserve account can be reduce as follows: [Debit] Reserve account xxxx [Credit] Share capital account xxxx
General reserves need to be converted into cash first by issuing new shares to share holders and after that cash can be used to purchase assets.
how can we increase the general reserve
yes.. I want transfer money from my paybox.me account to my liberty reserve account{U2979432)