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General reserves are funds set aside by a company to cover future liabilities or unexpected expenses. Examples include retained earnings, which are profits not distributed as dividends, and provisions for bad debts, which anticipate potential losses from uncollectible accounts. Other examples may include reserves for repairs and maintenance or for legal claims. These reserves help ensure financial stability and prepare the company for unforeseen challenges.
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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 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 are the examples of general references?
Examples Of General References:*Encyclopedia*Atlas*Dictionary*Almanac*Literature:)-That's All-:)
What was the reserve trenches like?
Reserve trenches
How many troops did General George B McClellan hold in reserve at the Battle of Antietam in 1862?
General George McClellan's mistake in the Battle of Antietam was hesitating and not acting decisively enough to take advantage of his manpower. He held back far too many troops in reserve that he did not use. Technically the battle was a draw. Historians conclude he should have been able to deal a much heavier blow to Confederate forces.
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 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
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.
