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- Types of reserves12345:
- Capital reserves: These are created from sources other than profits, such as sale of fixed assets, premium on issue of shares, etc. They are not available for dividend distribution.
- Revenue reserves: These are created from profits and can be used for various purposes, such as expansion, dividend, contingencies, etc.
- Specific reserves: These are created for some specific purpose and can be used only for those specific purposes. Examples include investment fluctuation reserves, debenture redemption reserves, legal reserve, etc.
- General reserves: These are created without any specific purpose and can be used for any purpose. Examples include general revenue reserve, dividend equalisation reserve, etc.
- Secret reserves: These are not disclosed in the balance sheet and are created by understating assets or overstating liabilities. They are used to strengthen the financial position of the company.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Examples – General reserve, Reserve for Dividends Equalization, Reserve for Expansion, Reserve for Increased Cost of Replacement etc. There are mainly 2 different types of reserves; Capital and Revenue.www.accountingcapital.com/basic-accounting/wha…There are different types of reserves used in financial accounting, including capital reserves, revenue reserves, statutory reserves, realized reserves, unrealized reserves.en.wikipedia.org/wiki/Reserve_(accounting)Expansion and Diversification of the company Payment of the liability Purchasing the fixed assets Redemption of Debentures Payment of dividend Writing off the losses Types of Reserves: Reserves are mainly classified into three major categories, i.e., Revenue Reserve, Capital Reserve, and Secret Reserve:www.geeksforgeeks.org/reserves-and-its-types/Future contingency reserve Dividend equalisation reserve Employee bonuses General revenue reserve Expansion or growth reserve Legal reservebusinessfinancing.co.uk/accounting/reserves-in-ac…Types of Reserves: General Reserves:These are those which are generally created without any specific purpose. Specific Reserves:These are those which created for some specific purpose and can be used only for those specific purposes. Examples include investment fluctuation reserves, debenture redemption reserves, etc.www.toppr.com/ask/en-pk/content/concept/types-o… - People also ask
Reserves Type: Top 10 Types of Reserves (With Diagram)
- Estimated Reading Time: 6 mins
- General Reserve: A general reserve is that part of the profits which is set aside to meet any …
- Specific Reserve: ADVERTISEMENTS: It is a reserve which is created of some definite or …
- Revenue Reserve: These reserves consist of un-contributed revenue gains consisting of …
- Capital Reserves: These reserves are not available for distribution among shareholders as …
- Valuation or Assets Reserves: Valuation reserves are set up to offset the loss of value of …
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