This article throws light upon the top eight sources of surplus. The sources are: 1. Earned Surplus 2. Capital Surplus 3. Surplus from Unrealised Appreciation of Assets 4. Surplus from Realised Appreciation of Assets 5. Surplus from Mergers, Consolidations and Reorganisations 6. Surplus from Reduction of Share Capital 7. Surplus from Secret Reserves 8. Paid-in-surplus. Source # 1. Earned Surplus: [...]
After reading this article you will learn about the Ploughing Back of Profits:- 1. Meaning of Ploughing Bank of Profits 2. Necessity of Ploughing Back 3. Factors Influencing Re-Investment 4. Merits 5. Limitations. Contents: Meaning of Ploughing Bank of Profits Necessity of Ploughing Back Factors Influencing the Re-Investment of Profits Merits of Ploughing Back of Profits Limitations of Ploughing-Back of [...]
This article throws light upon the top ten types of reserves created by companies. The types are: 1. General Reserve 2. Specific Reserve 3. Revenue Reserve 4. Capital Reserves 5. Valuation or Assets Reserves 6. Proprietary Reserves 7. Liability Reserves 8. Funded Reserves 9. Sinking Fund Reserves 10. Secret Reserves. Type # 1. General Reserve: A general reserve is that [...]