Reserves are usually divisible into two kinds – specific and general reserves. These again may be classified as either revenue reserves or capital reserves. An essential point to note is that a reserve is not a charge to be deducted before arriving at the profit for the period under review, but it is an appropriation [...]

The preceding sections have dealt with the conventional grouping of the revenue accounts which lead to the final profit. In a complex business the grouping of results into Manufacturing, Trading and Profit and Loss Accounts can be somewhat arbitrary. For the purpose of presenting the results for a particular period in a concise and

The principal forms of revenue accounts The revenue accounts, whose purpose is eventually to show the profit or loss for a period, and the way in which the profit or loss is disposed of, are normally subdivided where necessary as follows: Manufacturing account Trading account Profit and loss account Appropriation account Variants of these conventional [...]