Which of the following is the capital reserve of a compan...
Which of the following is the capital reserve of a company?
Share premium
Retained profit
Accumulated depreciation
Loss on forfeited shares
Correct answer is A
A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit.
Capital Reserve is a type of profit that is earned on capital transactions - an example would be the profit arising from the forfeiture of shares, share premium, Capital Redemption Reserve or Debenture Redemption Reserve.
Debtors and credit sales for a period are D 120,00 and D 600,00 respectively. The debtor's payme...
The difference between book keeping and accounting is that while ...
The trader's capital in a single entry system is ascertained by preparing ...
Branch stock account is used to determine the ...
An asset was purchase for N343m in 2003. The estimated life of the asset was 3 years with a r...
An example of a nominal account is ...
The document used in government accounting to shoe evidence of cash receipt and payments is the ...
A reduction n price to encourage prompt payment is........ ...
The document which contains the internal regulations of a limited liability company is the ...