question_answer

List any four items of ?reserves? that are shown under the heading ?reserves and surplus in the balance sheet of a company as per schedule III of the companies Act, 2013. Identify the value in showing the items separately in the notes to accounts?

Answer:

The four items show under the heading reserves and surplus are:             (i) Capital Reserve                                   (ii) Securities Premium Reserve             (iii) Capital Redemption Reserve                (iv) Debenture Redemption Reserve             Value highlighted is By showing the items separately in the notes to accounts, the government Law makers are desirous to show complete transparency to tall stakeholders.