1988 — Page 50

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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