Dear Sir,
Please help me understand the appropriation
Prime Stores Ltd has the following balances in Reserves and surplus:-
Debenture Redemption Reserve 5,00,000
Securities Premium Reserve 6,00,000
Surplus i.e. balance in statement of Profit and Loss A/c (1,50,000)
During the year ended 30/03/2016 it earned a profit after tax of . $5,00,000 .
It decided to appropriate 1,00,000 towards DRR , 1,25,000 towards General reserve and declare
a final dividend of $.75,000. Prepare Notes to account on Reserves and Surplus.
Ask the Tutor ACCA SBR
Notes to account reserves
3y ago#1 This is asking for a SOCIE. A book-keeping question.
I haven't seen a debenture redemption reserve for 35 years - not sure they exist now (or then:))
Follow the principles for this (or use our notes) from FA and/or FR
Definitely not SBR
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