These reserves are created out of capital profits:

Related MCQs

• These reserves are created out of revenue profits of the business for a specific purpose:
• These are the reserves created only to strengthen the financial position or the business and to keep the funds available for any future contingency or expenditure that may be required:
• As per the Companies Act, 1956 which of these are allowed to create secret reserves in their books of account
• These reserves are not shown in the balance sheet:
• If opening capital is Rs.5,000; closing capital - Rs.7,000; drawings - Rs.1,000 and additional capital introduced during the year is Rs.500; then, the amount of profit made would amounted to
• If the opening capital is Rs.20,000 and closing capital is Rs.25,000; drawings made amounted to Rs.1,800; then, the amount of Rs.________ must be introduced as an additional capital during the year in order to earn a profit of Rs.2,800.
• In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years.
• Which of the following should be deducted from the shares capital to find out paid up capital
• Which of the following should be deducted from the share capital to find out paid up capital
• Madhu Ltd. forfeited 800 shares of `10 each issued at 10% premium to Shyam (` 9 called up) on which he did not pay ` 3 of allotment (including premium) and first call of `2. Out of these, 600 shares were re-issued to Ram as fully paid up for `9 per share. What is to amount to be transferred to capital Reserve?