How is profit prior to incorporation treated as ? - Study24x7
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Priya Sharma
17 Aug 2022 10:36 AM study24x7 study24x7

How is profit prior to incorporation treated as ?

A

Revenue reserve

B

Secret reserve

C

Capital reserve

D

General reserve

SSC Banking Defence
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  • shruti bhardwaj

    • A capital reserve is taken out of the capital profit and is not shared as a dividend to the shareholder. The profit prior to incorporation treated as Capital reserve. Hence, the correct answer is Option-C.

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    Reply 17 Aug 2022 12:44 PM
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