Question

how many types of reserve explain​

Answer 1

There are two main kinds of reserves: revenuereserves and capital reserves. They are taken fromdifferent sources of income and are usually set aside for different purposes.

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Answer 2

There are two main kinds of reserves: revenue reserves and capital reserves. They are taken from different sources of income and are usually set aside for different purposes

revenue reserves-

Revenue reserves are portions of profits earned by a company’s normal operations which are then set aside

capital reserves-

Capital reserves are created out of capital profits – profits which arise from sources other than normal trading activities. Capital reserves are usually set aside for capital losses.