parameswar.reddy

 Profile Answers by parameswar.reddy Questions by parameswar.reddy

• Nov 19th, 2007

 

Reserve is nothing but  a buffer......we have two reserves like Capital Reserve and General Reserve.....
Fow acquiring Capital Items such reserve is useful......for all general items general reserve is useful

Pavan Kumar

• Nov 21st, 2007

 

Reserve is nothing but money kepting a side for future expenses/payments i.e. unknown expenses.

vasudeo007

 Profile Answers by vasudeo007 

• Aug 18th, 2008

 

The word reserves is always used along with Surpluses.

Surplus means any trading/business surplus in any financial year.

While reserve means money kept aside for specific purpose.

Example: General Reseve (kept aside for general contingency purpose)
Debenture Redemption Reserve (kept aside for redemption of debentures)
Capital Redemption Reserve (kept aside for redemption of equity capital, (this is only if at all shares are to be redeemed))
etc

Vasudeo