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Notes to account reserves

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Notes to account reserves

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by Stephen Widberg.
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  • February 18, 2023 at 1:45 pm #679095
    tinkle
    Participant
    • Topics: 51
    • Replies: 43
    • ☆☆

    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.

    February 18, 2023 at 2:39 pm #679096
    Stephen Widberg
    Keymaster
    • Topics: 14
    • Replies: 2872
    • ☆☆☆☆☆

    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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