What is a General Reserve? A general reserve is a reserve, which is created by appropriation of profits. It is created without any specific or particular purpose. The
What are Capital Reserve? The term capital reserve does not include any amount regarded as free for distribution through the Profit and Loss Account. A capital reserve is
What is Specific Reserve? A specific reserve is one, which is created for some specific purpose by debiting Profit and Loss Appropriation Account. Normally, it is available for
What are Secret Reserves The term secret reserve refers to a reserve the existence of which is not disclosed in the Balance Sheet. Secret reserves are also called
What are Reserve funds? The word “Fund” in relation to any reserve can be used only where such a reserve is specifically represented by earmarked investments. In other
Guidelines for Auditors in examination of vouchers While vouching the transactions, the auditor should first of all examine the various vouchers keeping the following points in mind: 1.
Re-issue of the Forfeited Shares When shares are forfeited, such shares become the property of the company and the directors can deal with them in any way they
Forfeiture of Shares | Auditor’s Duty The auditor’s duty regarding forfeiture of shares is as follows. 1. Examination of Articles of the Company: The auditor should examine the
What are General Reserves? Retention of profit with no specific purpose may be utilized by the company for many purposes. The Board of Directors decides upon the percentage
