Meaning of free reserves..

free reserves are those reserves which are available for distribution as dividends.p*l,general reserve are included in Free Reserves.let others give opinin as to any other reserves can be included in Free reserves ?

Binny ji,

"Free reserves" means those reserves which, as per the latest audited balance sheet of the company, are free for distribution as dividend and shall include balance to the credit of the securities premium account bat shall not include share application money. Free reserves are those which are not made for some specified purpose like Debenture redemption reserve of revaluation reserve.

i agree with ketan..n credit to P&L account is also included in general reserve

The remaining balance of Reserve created for specific purpose after utilising it for that purpose is also a free reserve.

For eg:-

1. Balance remained after utilising the Sinking Fund (Reserve created for Debenture redumption) is Free Reserve.

The remaining balance of Reserve created for specific purpose after utilising it for that purpose is also a free reserve.

For eg:-

1. Balance remained after utilising the Sinking Fund (Reserve created for Debenture redumption) is Free Reserve.

The remaining balance of Reserve created for specific purpose after utilising it for that purpose is also a free reserve.

For eg:-

1. Balance remained after utilising the Sinking Fund (Reserve created for Debenture redumption) is Free Reserve.