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Reserves are maintained from profit of current year business and profit is part of capital that's why reserves are also part of capital as if it is not maintained separately it will be included in profit or capital.
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Free reserves under S372A of the companies Act 1956 whether includes capital reserves?
No, Capital reserves cannot be part of free reserves under S372A of Companies Act 1956.
Is reserves in a balance sheet a current liability?
No reserves s part of the capital of the company. Reserves are funds help back by the company to do other things in the furture. It is not a current liability.
Why might a company repay part of its share capital?
Its cash reserves exceed its requirements for the foreseeable future
Example of capital reserves?
share premium
What restrictions are imposed on capital reserves?
it can't be distributed as dividend
Main uses of fund of commercial bank?
capital and reserves
Why is reserves and surplus a part of liabilities?
reserves and surplus are shown into liability side of the financial statiment, since reserve is the money set aside from the capital for future use hence defining surplus as a debit in the business thus attributing to its liabiltiness,
What is working capital in a Bank?
Total of Share capital, reserves and other funds and deposits is working capital of the bank but less revaluation reserve.
List and define two types of bank reserves?
Secondary Reserves- Assets that are invested in safe, marketable, short-term securities.Primary Reserves- Cash required to operate a bank.here is a third one...Excess Reserves- Capital reserves held by a bank in excess of what is required.
Does share capital change when bonus share issued?
When bonus shares are issued share capital also change as amount from retained earnings or reserves is utilized to issue bonus shares and it increase the share capital while decrease the reserves or retained earnings.
How capital reduces banking risks?
Capital is the amount of money the bank has as cash reserves to fund their business, write off bad debts etc. the more capital a bank has, the safer its financial situation would be and hence there are lesser risks on part of the bank as well as to its customers.
What are India's account balances and major features of their account balance and capital account balance and Forex reserves for 2001 to 2006?
1. capital account balance and forex reserves for the period 2001-2006 and list the major features.
