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Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...

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Which method of depreciation would you use if you were to receive a bonus which is based on net profit?

which method of depreciation to use when bonus is received that is based on net profit


Can capital reserve be transferred to profit and loss account?

No, capital reserves cannot be transferred to the profit and loss account. Capital reserves are typically created from specific transactions, such as the revaluation of assets or the issuance of shares at a premium, and are intended for long-term use within the company. They are not available for distribution as dividends, unlike profits generated from normal business operations that flow into the profit and loss account.


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...


What are the examples of a reserve account?

A reserve account is a financial account set aside to cover future liabilities or unexpected expenses. Examples include a loan loss reserve, which banks use to cover potential loan defaults, and a maintenance reserve in property management that funds repairs and upkeep. Additionally, insurance companies maintain reserves to pay future claims, while businesses may set aside funds in a contingency reserve for unforeseen operational costs.


How long can you keep a cheque?

If you want to use the cheque and withdraw money then the max duration is 6 months from the date of issue of the cheque.

Related Questions

Can you use revaluation reserve to issue share capital?

yes, for a bonus issue


Can a company issue free shares?

Yes it is possible and is called a bonus issue, the company must still fund the issue of the shares out of distributable reserves. Check for treatment on a bonus issue to ensure you use the correct treatment!


Can a reporting entity use value in use as the basis for revaluation?

yes i can a report entity because i need this


What Is Optus your Bonus?

Optus your bonus is the bonus credit you are given by Optus when you recharge .you can use it for Internet use or voice calls.


Procedure for revaluation of HSC result of maharashtra board?

You need to fill a revaluation form at the college itself along with a fee of 150/- towards revaluation. The result of revaluation will be informed by post at your residence directly after approx 10-15 days and in case your marks change as per the law passed by pune board in 2007 you will get a refund of 50% of the fees paid. Hope the information was of some use to you BEST OF LUCK Vicky..............


How do you use bonus gifts WeeWorld?

you use bonus gifts by sending gifts to other people, but on the top of your box where it has all these things you can send theres this section where it says bonus gifts


Which method of depreciation would you use if you were to receive a bonus which is based on net profit?

which method of depreciation to use when bonus is received that is based on net profit


Where can a person find bonus codes for use on the Party Poker website?

You can find bonus codes for use on the Party Poker website on sites such as CardsChat, RuffPoker, GimmeBonus, and PokerSiteBonuses. All of these websites have access to bonus codes for the site.


How many federal reserve districts are there and how did frank use them to his advantage?

There are 12 Federal Reserve Districts, and who is Frank?


How do you get a variation bonus in Arkham City video game?

A variation bonus is granted when you use two or more gadgets in a single combat.


Why a business may choose to use the Revaluation model to measure a class of PPE?

because the asset may change value due to the market performance


What is bonus code for PartyPoker?

One PartyPoker bonus code is TP500, which gives five hundred dollars to new players. Another bonus code for use on this online site for poker is CC500.