NOTES ON THE ACCOUNTS
12 RESERVES
Capital reserve
Balance at 1st January
Capitalisation on bonus issue
Add: Expenses on issue of shares
1988
1987
HK$'000
HK$'000
3,066
68,209
(64,582)
(654)
(561)
(654)
(65,143)
2,412
3,066
Balance at 31st December
General reserve
Balance at 1st January and 31st December
17,601
17,601
Profit and loss account
371,268
372,307
391,281
392,974
13 CONTINGENCY RESERVE INSURANCE
1988
1987
HK$'000
HK$'000
Balance at 1st January
Additions during year
Transfer to claims payable
Balance at 31st December
106,154
91,410
58,156
32,503
(5,053)
(17,759)
159,257
106,154
46
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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