Reserve & Surplus Group in Tally

There are two groups in Tally. Whose name is different but group work is the same.

1. Reserve & Surplus and
2. Retained Earnings.

These two mean only one. Reserve & Surplus stands for Earnings that are saved for future security. Similarly, Retained Earnings is the capital that is kept for saving the business and for future security which comes in bad times of business. or
Our plan is to take this business very forward after 5 years. For which after 5 years a lot of money is also required. So even for that you do not take some part of the Profit from now and save the capital which is kept in it is called Reserve & Surplus or Retained Earnings.

Reserve & Surplus Group in Tally

Example

1. Suppose there is a business. It has two partners Rupesh and Jayaprakash. Every year there is as much Profit.
2. Both of them take half the weight. But one day, both of them considered why this business should be increased more in the coming few years.
3. But both do not know that money will be needed to increase business. So both of them thought that this time they will not complete Profit, but will save some Profit from it. That is, we will save money.
4. Suppose this year the profit from the business was 2 lakh rupees, then earlier both of them used to be one lakh rupees. So they used to share among themselves.
5. But this time they did not take one lakh each and put 50-50 thousand rupees for Profit and 50-50 thousand rupees in Reserve & Surplus.
6. He did this for 5 years and after 5 years, Reserve & Surplus collected 5 lakh rupees. These have collected 5 lakh rupees. It is now called Reserve & Surplus or Retained Earnings.

Now by applying the same 5 lakh rupees, both friends can increase the business further. Or if you have a need of 5 lakh rupees anywhere in the business, you can apply for these money. And if they do not save Rs 5 lakh, they would have had to wait for Rs 5 lakh. This is called Reserve & Surplus or Retained Earnings.

Which Ledger Made in Reserve and Surplus Groups?

Whoever will save money from their profit. A laser from Reserve & Surplus is formed under his name. Which here both Rupesh (Partner A) and Jayaprakash (Partner B) save money every year, then ledger makes something like this.
Such as - Partner A Reserve & Surplus, Partner B Reserve & Surplus.

What is the Nature of the Reserve and Surplus Group?

When a group of Reserve & Surplus or Retained Earnings. It has Group Capital and Capital Nature Liability. Liability means the money that we have a responsibility or we have to give to someone.