About Reserves
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 SUMMARISED REVENUE ACCOUNT
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
Subdivision Of The Revenue Accounts (Part 1)
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...
