General Reserves

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April 17, 2017 at 1:25 pm #382115
Xairie
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Heelo Sir..Can the general reserve be ised for the settlement of a Non current liability??
April 17, 2017 at 3:19 pm #382166
John Moffat
Keymaster
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All of the reserves are simply the amounts owed to the shareholders as extra to the share capital.

To settle a non-current liability needs cash! The entry is Cr Cash and Dr Non-current liability.
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