reserves and surplus
This query is : Resolved
12 May 2011
are these reserves part of the shareholders fund
1.capital reserve
2.capital redemption reserve
3.revaluation reserve
4.sinking fund reserve
1.capital reserve
2.capital redemption reserve
3.revaluation reserve
4.sinking fund reserve
13 May 2011
No,Capital reserve is type of account on the B/s side of the company to face long term capital investment or capital project.Capital redemption reserved is type of reserved which can be used to redeem the capital.Revaluation reserve is created by revaluing the asset of the company.Sinking fund can be create for redemption of debt.Except revaluation reserve all this create by set aside from the profit of the company.
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