Question

Give four examples each of ‘revenue reserve’ and ‘capital reserves’

Answer 1

Examples of revenue reserve are as follows:

1. General reserve

2. Investment equalisation reserve

3. Dividend equalisation reserve

4. Debenture reserve

Examples of capital reserve are as follows:

1. Issues of shares at premium

2. Profit on forfeiture of shares

3. Profit on sale of fixed assets

4. Profit on redemption of debentures