From which account reserve is created ?
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Since reserves are created from earnings generated through a firm's core operations, it is recorded in its Profit and Loss Account. On the other hand, in the balance sheet, reserves appear on the liability side under the header of 'Reserves and Surplus. '
Dividend: Earnings cannot be divided among ...
Purpose: It is created to write off capital losses ...
Parameters: Capital Reserve
Source of creation: It is formulated with the ear...
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Answer:
Since reserves are created from earnings generated through a firm's core operations, it is recorded in its Profit and Loss Account. On the other hand, in the balance sheet, reserves appear on the liability side under the header of 'Reserves and Surplus. '
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