Question

In india what is reserve and surplus and how it is different from capital

Answer 1

Reserves and surplus are kept aside for paying any future liability. Reserves and surplus are created out of profits earned by a company. These profits are meant for the owners of a company, which are the equity shareholders and not the company itself. So, these are shown on the liability side of a balance sheet.

Answer 2

Answer:

These are libility sheet of our libility