Ask a Doubt
Request a call back

Join NOW to get access to exclusive study material for best results

CBSE Class 11-commerce Answered

‘Reserve is an appropriation of profit’ Do you agree? If yes, why?
Asked by Topperlearning User | 08 Aug, 2016, 12:58: PM
answered-by-expert Expert Answer

Yes, I do agree that reserve is an appropriation of profit. Reserve is an amount set aside from the profit, other than surplus which is retained by the business to meet future contingencies. Therefore, reserve is an appropriation of profit and is shown on the debit side of profit and loss appropriation account.

Answered by | 08 Aug, 2016, 02:58: PM
Multiple Choice Questions Practice Test
Answered Unanswered My Questions My Answers
CBSE 11-commerce - Accountancy Part I
Give any two differences between Reserves and Provisions.
Asked by Topperlearning User | 04 Jul, 2016, 08:16: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
Vinod Ltd. purchased a machinery of Rs.3,00,000 on 1st July, 2012 and Rs.3,00,000 on 1st November 2012. A company purchased one more machinery on 1stJanurary 2013 for Rs.2,00,000. A company sold one machinery for Rs.2,10,000 on 31st march 2014 which was purchased on 1st July 2012. Company purchased on second hand machinery on the same date for Rs.1,00,000. Rate of the depreciation is 10% by Straight Line Method and closes it’s accounts on 31st December every year. Prepare Machinery Account, Machinery Disposable Account and Provision for Depreciation A/c.
Asked by Topperlearning User | 04 Jul, 2016, 09:00: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
Define provision. State its importance.
Asked by Topperlearning User | 08 Aug, 2016, 01:00: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
Define reserve. Also state its types with examples.
Asked by Topperlearning User | 08 Aug, 2016, 01:16: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
Differentiate between provision and reserves.
Asked by Topperlearning User | 08 Aug, 2016, 12:58: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
Distinguish between specific reserve and general reserve.
Asked by Topperlearning User | 08 Aug, 2016, 12:58: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
‘Reserve is an appropriation of profit’ Do you agree? If yes, why?
Asked by Topperlearning User | 08 Aug, 2016, 12:58: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 11-commerce - Accountancy Part I
‘Provision cannot be used for dividend distribution.’ Why?
Asked by Topperlearning User | 08 Aug, 2016, 12:58: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
My Class Videos Tests ₹ Plans Ask a Doubt
Get Latest Study Material for Academic year 24-25 Click here
×