Question

Is reserve a charge against profit or an appropriation of profit? Discuss.​

Answer 1

Answer:

Reserves are the amounts set aside out of profits. ... It is an appropriation of profits which are used for the distribution of dividends or for meeting the contingent liabilities.

Explanation:

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Answer 2

Answer:

Reserve is a appropriation of profit and not a charge against profit . Reserve is an amount set aside out of profit.

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