answersLogoWhite

0

Why a company uses general reserve?

Updated: 9/16/2023
User Avatar

Wiki User

11y ago

Best Answer

because it needs to use it

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why a company uses general reserve?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Why debenture redemption reserve is transfer to general reserve?

When debentures are redeemed payment is made from a reserve which is created at the time of purchase of such debentures,therefore at the time of payment first it is transferred to general reserve then as it is expenditure to company.


What is general reserve?

General Reserve, in short is the part of reserve amount kept by the company out of its profits for future purpose. Example, if the company might not expect any contingencies or unforseen happenings in the future. Usually, companies keep 20% aside the general reserves out of the total profit earned for a particular year or a certain period.


What is revenue reserve and its example?

The revenue reserve is the retained earnings which are shown in the company's balance sheet as part of the shareholders' funds and are set aside to use to continue to pay dividends even if the company makes a loss. The example of the revenue reserve are the credit balance of the Profit and Loss Account, General Reserve and etc...


How you can increase general reserve when your profit has also decreased?

how can we increase the general reserve


What is amalgamation reserve?

Amalgamation reserve means the expenses bear by Transferee company for amalgamation with Transferor company is treated as reserve, this reserve is called as amalgamation reserve


What company uses a g as a logo?

General Electrics. They use the GE.


What company uses the slogan solid as a rock?

General Motors or GM


Is general reserve fund placed in asset side in a balance sheet?

General reserves are part of profit of the company for usable in future so it is the liability of company and shown in liability side of balance sheet.


Differentiate between general and specific reserve?

differentiate between general and specific reserve?


After redemption of debenture debenture reduption reserve where to transfer whether in PL Ac or in General reserve.?

After redemption of debentures, debenture redemption reserve is to be transferred to general reserve.


When was State General Reserve Fund created?

State General Reserve Fund was created in 1980.


What company uses the slogan like a rock -?

'GM' , or General Motors .