Name the reserve which does not appear in the balance sheet but it's existence is profitable for the company
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======》 SECRET RESERVE 《======
Secret reserves are created by the companies to strengthen the financial position of the company without disclosing in books of accounts.
This reserves is a hidden reserves and not shown in the balance sheet. It is created by showing the lesser net profit than the actual..
The secret reserves can be created by the following ways :::
( 1 ) By charging excess rates of depreciation.
( 2 ) By undervaluing the current assets.
( 3 ) By overvaluing the current liabilities.
( 4 ) By not recording of any assets at all.
( 5 ) By showing contingent liability as actual liability.
i hope this helps u....
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here is ur answer...
======》 SECRET RESERVE 《======
Secret reserves are created by the companies to strengthen the financial position of the company without disclosing in books of accounts.
This reserves is a hidden reserves and not shown in the balance sheet. It is created by showing the lesser net profit than the actual..
The secret reserves can be created by the following ways :::
( 1 ) By charging excess rates of depreciation.
( 2 ) By undervaluing the current assets.
( 3 ) By overvaluing the current liabilities.
( 4 ) By not recording of any assets at all.
( 5 ) By showing contingent liability as actual liability.
i hope this helps u....
mark me brainliest plz plz plz plz
anjali962:
mark me brainliest plz plz plz plz plz plz plz
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