Does reserve really set aside funds ? What if all the cash in hand as well as bank is utilized, creating reserve has no meaning.
2 Replies
(Guest)
resverve is a body of troops withheld from action to reinforce or protect others,
or additional to the regular forces and available in an emergency it is
in form of investment or debtors still not received or
in form of given loan which is not received
high reserve is high it means that company is going
on good condition
CA Gopal Somani
(Consultant)
(2070 Points)
Replied 26 March 2017
Yes, Reserve set aside funds.
Reserve does not necessarily means that it is deposited in bank, It can be invested in any assets (Fixed or current). Reserve are created from profit so if a firm/company is having more profit then it can have more reserves. All those profits/reserve may not be kept as cash/Bank it can be invested in fixed assets or some current assets.
Recent Topics
- CSR via Trusts and Form 10BE – Legality of 8
- NRO Conversion vs Closing Account and Gifting to M
- Exchange gain loss
- Donation to Prime Minister Relief Fund
- Depreciation rate software
- New GST Registration - Co Working and Virtual Pl
- Query regarding place of business in GST registrat
- GST on Plot Sale
- TDS return submitted, but neither rejected nor acc
- Trade payables
Related Threads
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
