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In what form does reserves and surplus exist on a balance sheet?
What are the different types of reserves and surpluses that can be found on a balance sheet?
There are several different types, including capital reserves, revenue reserves, general reserves, and specific reserves. Capital reserves are typically created when a company sells assets at a higher price than they were originally purchased for, while revenue reserves come from profits that have not been distributed as dividends. General reserves can be created for any purpose, while specific reserves are set aside for a particular purpose, such as a legal settlement.