Kinds of reserves - class-XI
Description: kinds of reserves | |
Number of Questions: 41 | |
Created by: Tanuja Atwal | |
Tags: book keeping and accountancy provisions and reserves depreciation, provisions and reserves depreciation, provision and reserve accountancy reserve and fund |
Capital reserves are normally created out of free of distributable profits.
Dividend equalization reserve is an example of general reserve.
Making excessive provision for doubtful debits builds up the secret reserve in the business.
General reserve can be used only for some specific purposes.
Under purchase method of amalgamation, _______ of the transferor company continues to appear in the balance sheet of the transferee company.
Redeemable Preference Shares of Rs. 1,00,000 are redeemed at a premium of $5\%$ for which purpose fresh equity capital of Rs. 40,000 is issued at par. What amount should be transferred to Capital Redemption Reserve account?
Which of the following may be utilized by a limited company for the redemption of redeemable preference shares?
If preference share are redeemed at premium then such premium may be provided out of the __________.
Secret reserve can be created by way of _________________.
_______ does not appear in the balance sheet.
Any reserve which is not apparent on the face of the balance sheet is known as _____________.
___________ is Created to stabilise or maintain dividend rate.
____________ is created to provide for claims of the workers due to accident, etc.
___________ is created to provide funds for redemption of debentures.
A specific reserve can be created for specific purpose.
__________ may be defined as a sum set aside out of divisible profits ad retained in order to provide for unexpected or unknown contingencies or loss or to equalize dividends or to strengthen the financial condition of the business.
Under sinking fund method of depreciation any surplus in sinking fund A/c is transferred to ____________.
Under sinking fund method of depreciation any deficit in sinking fund A/c is transferred to ____________.
Capital Redemption Reserve can be used for _______________.
Which of the following statements is false?
Which of the following cannot be used for the purpose of creation of capital redemption reserve account?
The Books of Accounts of Z Ltd. shows that the balance of sundry debtors is. 50,000 and reserve for doubtful debts is 2,000. Later the management of the company released that debts to the extent of 1,000 will become bad. It was decided to create a reserve at 5% on debtors. The amount of reserve for doubtful debts to be shown in profit and loss account is ________.
Which of these are allowed to create secret reserves in their books of account?
_________ is a secret reserve usually created to, provide for the lose by way of fluctuation in the value of investment.
______ is a secret reserve usually created to provide for the loss by way of fluctuation in the value of investment.
The Reserve which is credited for a particular purpose and which is a charge against revenue is called___________.
In case of issue of shares amount received above par value is credited to which account?
Securities Premium can be used by the company :
According to Section 78 of the companies Act, the amount in the Securities Premium A/c cannot be used for the purpose of __________.
A Ltd., Had $3,000$, $12\%$ Redeemable preference shares of Rs. $100$ each, fully paid up. The company issued $25,000$ equity shares of Rs. $10$ each at par and $1,000$ $14\%$ Debentures of $100$ each. All amounts were received in full. The payment was made in full. The amount to be transferred to capital Redemption Reserve Account Rs _________.
If vendors are issued fully paid shares of Rs. $1,00,000$ in consideration of net assets of Rs. $1,20,000$ the balance of Rs. $20,000$ will be credited to _____________.
When two firms amalgamate, general reserve is transferred to:
A provision is a ___________.
A company wishes to redeem its preference shares amounting to Rs. 1,00,000 at a premium of $5\%$ and for this purpose issues 5,000 equity shares of Rs. 10 each at a premium of $5\%$. The company also has a balance of Rs. 1,00,000 as general reserves and Rs. 50,000 in profit & loss account. The amount to be transferred to capital redemption reserves account for the purpose of redemption is:
Redeemable preference shares of $Rs. 2,00,000$ are redeemed at par for which purpose fresh equity capital of $Rs. 80,000$ is issued at par. What amount should be transferred to Capital Redemption Reserve account?
Redeemable preference shares of $Rs.2,00,000$ are redeemed at par for which purpose fresh equity capital of $Rs.80,000$ is issued at a discount of $10\%$.
What amount should be transferred to Capital Redemption Reserve account?
Capital reserve is_______.
Over provision of liabilities result into creation of ________.
Secret reserve is created by way of_________.
The balance of Capital Redemption Reserve Account is available for ___________.
Sinking funds is created for___________.