13 RESERVES
NOTES ON THE ACCOUNTS
1987
HK$'000
1986 HK$'000
Capital reserve
Balance at 1st January
68.209
80.678
Capitalisation on bonus issue (Note 12)
64.582
51.666
Add: Expenses on issue of shares
561
803
65,143
52,469
3,066
28,209
Transfer from profit and loss account
40,000
Balance at 31st December
3,066
68,209
General reserve
Balance at 1st January and 31st December
17,601
17,601
Profit and loss account
372,307
299,001
392,974
384,811
14 CONTINGENCY RESERVE INSURANCE
1987
1986
HK$'000
HK$'000
Balance at 1st January
Additions during year
Transfer to claims payable
Balance at 31st December
91,410
66,419
32,503
26.459
(17,759)
(1,468)
106,154
91,410
This reserve represents amounts set aside annually by the Company to meet possible future liabilities which may arise from third party claims in connection with the Company's bus operations and to cover potential losses which may be caused by fire damage to the fleet.
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