Question

what is the nature of general reserve fund according traditional approach

Answer 1

1.Real account - Debit what comes in,credit what goes out.  2.Personal account-Debit the receiver, credit the giver.  3.Nominal account-Debit all expenses and losses, credit all gains and incomes.  Gen reserve and dive equalization fund account are in the nature of real account mostly all assets and liabilities i.e., balance sheet items are real account. All P&L items are nominal accounts. Debtors and creditors are personal accounts.