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What is the difference between general reserve and specific reserve?
Wiki User
∙ 12y ago
BALAJI GOUDA
Wiki User
∙ 12y ago
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Differentiate between general and specific reserve?
differentiate between general and specific reserve?
What is the difference between capital reserve and reserve capital?
Capital reserve is a reserve created to deal with general, unspecified contingencies such as inflation. It is a fund set aside for the specific purpose and can not be distributed for other uses. Normally it is legally not distributable as dividends to shareholdersReserve Capital is the part of the Authorised capital which is not yet called up
What is the difference between general reserve and revenue reserve?
A reserve which is created out of the revenue profit is called revenue reserve. Revenue profit is earned in the normal course of the business. Revenue reserve refers to the undistributed revenue profit. It is created for strengthening the financial position, replacing deprecialble assets, redeeming liabilities, declaring uniform rate of dividend and conducting research and development functions. If the reserve is not needed in the future, it can be distributed as dividend to the shareholders.There are two types of revenue reserve:a) General ReserveA reserve which is created out of the profit not for a specific purpose is known as general reserve.General reserve is used for general purpose as per the discretion of the management. Usually, general reserve is used for strengthening the financial position and meeting future contingencies and losses.b) Specific ReserveA reserve which is created out of the profit for a particular purpose is known as specific reserve. Such reserve can not be utilized for any purpose other than specified. Specific reserve is created by debiting the profit and loss appropriation account. It can be invested in outside securities. It serves for a specific purpose as to equalize dividend or to redeem a fixed liability or to replace a fixed assets or to conduct a research and development work.The following are the important types of specific reserve:* Dividend equalization fund* Sinking fund* Research and development fund
The difference between primary and secondary reserves?
what are the diffrence between primary reserve and secondary reserve?
What is difference between fund and reserve?
ok ok
What is the difference between delegates reserve and concurrent powers?
sb
What is the difference between to book and to reserve?
differentiate between reference materials and reserved books
What is the difference between revaluation Surplus and revaluation Reserve?
Fundamentally, a revaluation surplus and a revaluation reserve is the same. A revaluation reserve is a revaluation surplus obtained from evaluation.
Difference between Debenture Redemption Reserve and Capital redumption Reserve?
The Capital Redemption Reserve is a fund that secures a creditor. Debenture Redemption Reserve is for the purpose of security payments only.
What is the difference between reserves and surplus?
A reserve is a planned amount, a surplus is unplanned.
What is the difference between a park and a nature reserve?
A park is man made and is publicly accessible. A nature reserve is a protected area for wildlife.
How you can increase general reserve when your profit has also decreased?
how can we increase the general reserve
