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What is capital reserve and reserve capital?

Answers were Sorted based on User's Feedback



What is capital reserve and reserve capital?..

Answer / raghu aps

Capital reserve is refer to the it use for only Capital
Purpose like Buying Assets( Plant &Furniture Etc)And addi
Capital

Is This Answer Correct ?    5 Yes 2 No

What is capital reserve and reserve capital?..

Answer / deepak choudhary

capital reserve is that type of reserve which consist profits which are not distributable among ownerit includes only those type of profit which does not require a seperate disclosure for eg:-profit on reissue of shares... this reserve is used only for special purposes like writing off premium on redemption of debenture,fictitious assets etc
while
reserve capital is that part of capital which is reserved by the company and to be called by the company only at the time of liquidation ,,,this capital require a special resolution which specify the amount to be called at the time of liquidation..

Is This Answer Correct ?    2 Yes 0 No

What is capital reserve and reserve capital?..

Answer / inderdeep singh

capital reserve is a resource created by the accumulated capital surplus (not revenue surplus) of an organization, such as by an upward revaluation of its assets to reflect their current market value after appreciation and reserve capital is portion of uncalled capital which can be called at certain point of time.

Is This Answer Correct ?    1 Yes 0 No

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