Doubt on Reserves & Surplus

This query is : Resolved

sankar ponnan (Querist)
Follow

18 November 2021 Sir / Mam

The balance sheet of a Pvt Ltd Co, shows the reserves and surplus balance of Rs.7,75,000/- at the end of year?

It means the equal amount should be in bank at the end of year?

Or

If not, It is shown as mere record to adjust the loss in future?

Kindly please advise us

thanks in adv

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

18 November 2021 Reserves and surplus are the total amount of maintained earnings reported as a component of Shareholders Equity and set aside by the company for specific objectives such as purchasing fixed assets, paying legal settlements, repaying debts, or paying dividends, and some others.

The same amount need not be lying in bank.

Message likes : 1 times