Question

Which of the following is a free reserve" in context to Buy Back of shares?
(A) Debentures redemption reserve
(B) Shares forfeited account
(C) Workmen's compensation fund after meeting liabilities
(D) Capital redemption reserve
e) Assets Revolution Reserve ​

Answer 1

Answer:

Which cLass dear.....

Answer 2

Workmen's compensation fund after meeting liabilities is a free reserve.

• The entire workmen's compensation is treated as free reserve when -

1. At the point when the pay holds an existence in the liabilities of a balance sheet.
2. At the date of disintegration and no case in regard of the workers is payable by the firm at the hour of disintegration.

• At this event the entire remuneration saves are be treated as free saves and will be circulated among all the accomplices in their benefit sharing proportion