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Example of specific reserve |
| Answer» A specific reserve is one, which is created for some specific purpose by debiting Profit and Loss Appropriation Account. Normally, it is available for the purpose for which it has been created.Some of the examples of specific reserves are as below:\tDividend Equalization Reserve.\tInvestment Fluctuation Reserve.\tDebenture Redemption Reserve.\tPlant and Machinery Replacement such as Sinking Fund Reserve or Depreciation Fund Reserve. | |