Revenues, expenses and appropriations are shown in the profit and loss statement. The top half shows revenues and expenses, the bottom half shows appropriations. Not all of the profit has to be appropriated. Sometimes part of the profit is retained. The profit which is retained is recorded in a reserve account.
Retained profits is the most commonly used reserve account.
There are many possible reserves, most are just like retained profits and can be distributed as dividends. Some, however, are not distributed as dividends because legislation or standard practice prevents it. These are often called capital reserves. The most common form of appropriation is a the payment of a dividend. They are usually paid in cash but may be paid with other assets or with new shares in the company.