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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.
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What will be Journal entry for purchase of building from general reserve account?
General reserve account cannot be used for purchases of building as general reserve accounts is fixed for some limited kind of transactions like
What is the general ledger journal entry to begin a Reserve Account?
debit reserve accountcredit cash / bank
What are the examples of revenue reserves?
Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.
How do i record in a journal entry an amount of 5000 should be transfered to the general reserve account?
You record on the debit side an amount of 5000 that should be transferred to the general reserve account.
Where does general reserve appears in final accounts?
Asset side
How you can increase general reserve when your profit has also decreased?
how can we increase the general reserve
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 will be Journal entry for purchase of building from general reserve account?
General reserve account cannot be used for purchases of building as general reserve accounts is fixed for some limited kind of transactions like
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.
Is General Reserve is Free Reserve?
No, a general reserve is not considered a free reserve. General reserves are created by setting aside a portion of profits for specific purposes, such as future contingencies or expansion, and are not typically available for distribution as dividends. Free reserves, on the other hand, refer to profits that are not earmarked for any specific use and can be distributed to shareholders.
What are the example of Revenues?
Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.
What is the general ledger journal entry to begin a Reserve Account?
debit reserve accountcredit cash / bank
In tally general reserve goes to which group?
capital
What are the examples of revenue reserves?
Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.
How do i record in a journal entry an amount of 5000 should be transfered to the general reserve account?
You record on the debit side an amount of 5000 that should be transferred to the general reserve account.
