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!!!!
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Reserves and surplus
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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
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