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because it needs to use it

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13y ago

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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 transfer to general reserve?

Transfer to general reserve refers to the allocation of a portion of a company's profits to its general reserve account, which is part of its retained earnings. This transfer is typically made to strengthen the company's financial position, enhance liquidity, or prepare for future investments and contingencies. By setting aside funds in the general reserve, a company can ensure it has resources available for unexpected expenses or opportunities, while also signaling financial stability to investors and stakeholders.


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 the slogan solid as a rock?

General Motors or GM


What company uses a g as a logo?

General Electrics. They use the GE.


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.


What company uses the slogan like a rock -?

'GM' , or General Motors .