Beruflich Dokumente
Kultur Dokumente
1.
Appreciate the purpose of reserves.
2.
Define reserves
3.
Name the categories of reserves
4.
Describe revenue reserves and name and
outline the types of revenue reserves.
5.
Show the journal entries for revenue reserve
6.
Describe capital reserves and name and
outline each type of capital reserve.
7.
Show the relevant journal entries of capital
reserves
It
Reserves
There
-
Revenue
Specific
reserves
Specific reserves are revenue reserves which
have been set aside for some specific
purpose such as replacement of fixed assets
or in anticipation of an expansion of the
business.
General reserves
General reserves are other revenue reserves
considered desirable or necessary to
reinforce the financial position of the
company.
Revenue
To
Although
Before
Couples
Required:
Journal
Setting
Capital
Gains
Share
premium
Revaluation reserves
Capital redemption reserves
Case
2
Couples Resort revalued its premises and the
result was a $5million increase
Required
Show the journal entry
Revaluation
Share
Capital
Debit
See
See
p. 29, Teck