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Recording Reserves

A reserve is ...

Question

A reserve is part of _____ that have been appropriated for a particular purpose.

A

Bad debts

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B

Profits

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C

Taxation

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D

Assets

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Solution

The correct option is B
Profits

A reserve is part of profits that have been appropriated for a particular purpose.

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Similar questions

Q. In the trial balance are shown Debtors Rs. 2400, Bad Debts Rs 221, Bad Debts Reserve Rs 324. For creating a Reserve for Doubtful Debts @

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C. Bad Debts A/c To Consignee A/c	Dr.
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