1.

Balances mentioned below are appropriated from profit. State whether it is reserve or provision:1. Bad debts reserve2. Debenture redemption fund3. Depreciation fund4. Workers accident compensation fund5. Discount reserve on debtors6. Dividend equalization fund7. Capital reserve8. Workers profit-sharing fund9. General reserve10. Capital redemption reserve

Answer»

Reserves :

(2) Debenture redemption fund
(4) Workers accident compensation fund
(6) Dividend equalization fund
(7) Capital reserve
(9) General reserve
(10) Capital redemption reserve

Provisions :

(1) Bad debts reserve
(3) Depreciation fund
(5) Discount reserve on debtors
(8) Workers profit-sharing fund



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