NCERT · Class 11 · Accountancy · Depreciation, Provisions and ReservesWhich of the following is an example of a specific reserve?
Step-by-Step Solution
Dividend Equalisation Fund is a specific reserve created for a specific purpose.
Detailed Options Breakdown
Option : General Reserve
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 1: Dividend Equalisation Fund (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Retained Earnings
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 3: Capital Redemption Reserve
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
💡 Study Guide: This question tests core syllabus concepts from Depreciation, Provisions and Reserves. For formulas, key summaries, and mock exam reference guides, read the full Depreciation, Provisions and Reserves Revision Notes.