Reserves must be kept
Sameer Sheikh (Accountant) (57 Points)
19 October 2020
Reserve and its types to be kept out of profit for sole propertiors,partnership and pvt ltd?
Sameer Sheikh (Accountant) (57 Points)
19 October 2020
prasad Nilugal
( GST Practitioner & Accounts )
(14215 Points)
Replied 19 October 2020
Sole Propertiors not keep any reserve because he is not paying Dividend and other contingencies etc , however in case of partnership firm and Pvt ltd they have to pay other type of contingency from reserve , so they have to mainten reserve .
However , sole proprietors also can mainten reserve surplus for Reserve for bad debts , reserve for Discount on creditors , etc .
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