Question

8.
Prepare a note on Reserves and surplus :
General Reserve
Capital Reserve
Securities Premium
Profit and Loss A/c (Dr. balance)
[Ans. Total 3,60,000]
₹
2,50,000
1,00,000
50,000
40,000



How to solve this?

Answer 1

Answer:

general reserve, security premium is an income so it will be on credit side of p&l A/c

and capital reserve on liability side of balance sheet

therefore, The balance as per p&l will be,

250000+50000-40000

=260000

it is net profit therefore it will be added in capital reserve

i.e capital reserve+ net profit

100000+260000

=360000