Principles of accounts....望解答!

2010-02-05 3:09 am

1. Revenue reserve 和capital reserve 有什麼分別?
2. Retained earnings 是屬於revenue / capital reserve? Why?
3. General reserve = revenue reserves 嗎?
4. Transfer of reserves 是什麼?

Thank you!

回答 (1)

用戶2576

2010-02-05 6:30 am

✔ 最佳答案

1. Revenue Reserve can be distributed to shareholders normally in the form of cash dividend. Capital reserve could not be distributed but could be capitalised to increase the share capital.
2. Retained earnings could be distributed to shareholders as cash dividend and thus it is of Revenue Reserve.
3. Yes.
4. Normally refer to a transfer of revenue reserve to capital reserve and not the otherwayround, i.e. not from capital reserve to revenue reserve. Once the revenue reserve is transferred to capital reserve, it could only be used for capitalisation of share capital.

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