Vidyalelo
Commerce · Q228

Accounting

Graduate and Post Graduate · Commerce · question 228

Q228

Which of the following can be distributed among the shareholders?

A.
Capital reserve
B.
General reserve
Answer
C.
Revaluation reserve
D.
All of the above

Answer: Option B

Solution

Answer: Option B
Solution:
General reserve can be distributed among the shareholders. General reserve can be used for distribution of dividend among shareholders when profit is insufficient. Reserves and surpluses are shown in liabilities side of balance sheet.