praveen_yadu
Oct 2, 2007, 05:12 AM
Show me right definitions of reserve and surplus and what is role his in balance sheet.
CliffARobinson
Jan 31, 2012, 02:29 PM
Reserves are amounts kept in the company and not distributed to owners.
Surplus is the amount left after payments are made from receipts.
A Balance Sheet is a snapshot in time of the business Assets and Liabilities, of which, Reserves and Surplus would be considered Assets.