In the context of Co-operative Housing Societies (CHS) or Apartment Owners Associations (AOA)
A Reserve Fund comprises of –
a) the amounts carried to this fund, from year to year, out of the net profit of that year
b) all entrance fees received by the society from its members
c) all transfer fees received by the society from its members on transfer of shares, along with the occupancy rights*
d) all premium received by the society from its members on transfer of their interest in the capital or property of the society*
e) all donations received by the society, except those received by it for the specific purpose.
Utilization: The Reserve Fund of the Society may be utilized for the expenditure on repairs, maintenance and renewals of the society’s property.
To ensure your Association / Society’s Reserve Fund’s are accounted correctly and are centrally available for the review of Auditor, Managing Committee as well as Members, use the End-to-End online accounting features of ADDA ERP!
* These are not applicable for Apartment Owners Associations (AOA) or Home Owners Associations (HOA), Residents Welfare Associations (RWA).