Different Types of Reserves
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Types of Reserves: A) Revenue Reserves: Revenue Reserves are the reserves which are created out of revenue profits which have been earned in the ordinary course of business. This reserve …
Accounts
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What is Reserves?
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Reserves: Reserves mean the amount set aside out of profits and other surpluses to meet future uncertainties. In other words, a reserve is meant for meeting any unknown liability or …
Difference Between Provision and Reserve
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Difference between Provision And Reserve: 1. Provision is a charge against profit. Reserve is an appropriation of profit. 2. Creation of provision is a legal necessity. Provisions have to show …
What is Provisions?
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Provisions: The term Provision means the setting aside of an estimated amount to meet known liability or loss the amount of which may not be exactly ascertained. It is a …
What is Depreciation?
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The term Depreciation means Loss or Diminution or decrease or decline in the value of fixed assets. The decline in the value of an asset occurs due to wear and …
What is Rectification of errors
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Rectification of errors is a process through which the errors or mistakes committed while writing the books of accounts are connected. It should be kept in mind that the error …
What is Suspense account
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A suspense account is an account opened as a temporary measure only to reconcile a Trial balance. Sometimes, in spite of the best efforts of an accountant, all the errors …
What is Trial Balance
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Trial balance is the list of debit and credit balances, taken out from ledger. It also includes the balances of cash and bank taken from the cash book. In other …
What is Forfeiture of Shares
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Forfeiture of shares means cancellation of the shares held by the defaulting member. Forfeiture of shares leads to compulsory termination of membership of the defaulting shareholder by way of penalty …