Accountancy, asked by Surjeeet, 1 year ago

Advantages of reserve fund and meaning of sinking fund.

Answers

Answered by babushall
0

reserve fund means when company is in profit some amount of profits are set aside .so the the advantageis that it can be used when company is in loss in the future .

sinking fund means keeping the depreciated value of the Asset in money so as to purchase the same asset when it is fully lost its value.

Similar questions