I'm the bookkeeper for our strata cororation and I'm not sure if I'm
accounting for the reserve funds correctly. Please advise.

I guess the main question is if the reserve funds we transfer at the
end of the year to the reserves appear as an EXPENSE on the income
statement. And as a long-term liability on the balance sheet. Is is
truly an expense?

These are the entries I use at the end of the year:
DR Reserve expense $10,000
    CR Due to contingency reserve $10,000
- until the AGM when a decision is made to transfer or just keep as
operating monies
- this amount is our surplus

Then if it is to be transfered:
DR Due to contingency reserve $10,000
    CR Contingency Reserve Funds    $10,000
Am I on track?