October 30, 2016 admin

Other Capital Reserves

Liabilities and Net Worth

NON US⁄Dealer Development Only OTHER CAPITAL RESERVES NET WORTH ACCOUNT
2865

ACCOUNT EXPLANATION
Cumulated balance of all other capital reserves approved by the Board of Directors. (Corporate life time up to date.)
TRANSACTIONS
  Jrnl. Dr. Cr.
  Other Capital reserves approved by the Board of Directors CD
    Other Capital Reserves Estimation 2710
      Other Capital Reserves   2460
             
  Other Capital reserves capitalization CD    
    Other Capital Reserves   2865  
      Preferred Stock     2800
      Common Stock     2801
COMMENTS
  • Other capital reserves can grow up to total after tax profit, after deduction of employes profit sharing and legal reserve.
  • Usually these reserves are created in order to prevent contingencies or future investments.
  • A supporting schedule should be prepared for control and management review.
  • Capitalization should be supported by dealers Board of Directors meeting.