What is Reserves?
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
Reserve is a part of the profit may be set aside and retainer in the business to provide for certain future needs like growth and expansion or to meet future contingencies such as workmen compensation.( Amounts set aside for future liabilities). Reserves are the appropriations of profit to strengthen the financial position of the business.
Suggested Q&A
Accountancy · Class 11- AccountancyClass 11What is meant by Assets? Also explain its types.
- AccountancyClass 11Explain the following terms of Accounting: (a) Sales (b) Revenues (c) Profit (d) Gain (e) Loss (f) Discount (g) Drawings.
- AccountancyClass 11Describe the informational needs of external users.
- AccountancyClass 11Explain any five advantages of Accounting.
- AccountancyClass 11Explain any five limitations of Accounting.
- AccountancyClass 11Explain the following terms of Accounting: (a) Expenses (b) Expenditure (c) Debtors (d) Creditors (e) Voucher.