What do you understand by General
reseave
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A general reserve is a reserve, which is created by appropriation of profits. ...
The aim of creating a general reserve is to provide additional working capital or to strengthen the cash resources of the business, out of profits of the company, from Profit and Loss Appropriation Account.
General Reserve is the amount kept aside from the profit earned by the company during its normal course of the operation to meet future needs.
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when any amount is kept separate by a company out of its profit for future proposed then that is called as. general reseave in other words the reseave are the retained earnings of a company which are kept aside out of compan profits to meet future known or unknown obligation
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