Hai friends! how are you?
I had a doubt on RESERVES AND SURPLUS that in how many ways we can use these reserves.and any previous years expenditure be directly debited to the reserves and surplus i need answer urgent please guys!!!!
THANK YOU
avinash annam (C.A-IPCC article student) (79 Points)
03 July 2012Hai friends! how are you?
I had a doubt on RESERVES AND SURPLUS that in how many ways we can use these reserves.and any previous years expenditure be directly debited to the reserves and surplus i need answer urgent please guys!!!!
THANK YOU
Aarush
(Delhi)
(1566 Points)
Replied 03 July 2012
The company can use the general reserve for various purposes including issue of bonus shares to shareholders and payment of dividend.
When a company generates a profit, management has one of two choices: they can either pay it out to shareholders as a cash dividend, or retain the earnings and reinvest them in the business
CAclubindia
