Question

what is the object of creating reserve in accounts?​

Answer 1

Answer:

A reserve is profits that have been appropriated for a particular purpose. Reserves are sometimes set up to purchase fixed assets, pay an expected legal settlement, pay bonuses, pay off debt, pay for repairs and maintenance, and so forth. ... The board of directors is authorized to create a reserve.

Answer 2

$\huge\sf\boxed{♡HeyMate♡}$

A reserve is profits that have been appropriated for a particular purpose. Reserves are sometimes set up to purchase fixed assets, pay an expected legal settlement, pay bonuses, pay off debt, pay for repairs and maintenance and so forth. The board of directors is authorized to create a reserve...

Thanks.