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The temporary cash surplus is managed just like any other cash. The relevant transactions should be recorded on how the cash has been used.
When company goes to liquidation process then realization account is created which is a temporary account and all assets and lialibilities are realized through this account and after realization there may be surplus or defeciancy in realization account.
What is reserve & surplus in accounts
entries for Reserve & surplus
Surplus mean excess in business. A business can have a surplus of product in its inventory, which isn't good for revenues.
there is no surplus or shortage
The opposite of surplus (excess) is Deficit or Shortage.
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
A shortage occurs when quantity demand exceeds quantity supplied. A surplus occurs when quantity supplied exceeds quantity demanded.
A surplus is more than needed, a deficit is a shortage or loss
there is a surplus
deficit famine shortfall shortage lack
if, at a current price there is a shortage of a good
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a Decrease in quolity and demand of the other
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A shortage is when there is a LACK (not enough) of that particular resource/product/item. A surplus is when there is EXCESS, or too much of a resource/product/item.