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Reserves

Accountancy

What is Dividend equalization Reserves.?

Kishan Shettigar

CA Inter

★ 2K+

14-May-21 19:31

253

Answers (2)

It is Revenue reserve that serves as a buffer between a certain dividend level and profits available. Sums are transferred to this reserve account in good years, and withdrawn from in poor years to maintain the dividend amount

Rapolu mahathi

CA Final

★ 16K+

14-May-21 19:35

Dividend Equalization reserve is a distributable reserve which is specifically set up toÂ ensure that dividends remain stable for despite being changes in earnings. Dividend equalization reserve is a specific reserve.