what is capital reserve?
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Answer / samuel alexander
The reserve which is made from capital gains is called
capital reserve
| Is This Answer Correct ? | 13 Yes | 6 No |
Capital Reserve is a reserve we made from profits to spend
on capital expenditure or capital investment for long-term ie..
more than one year.
| Is This Answer Correct ? | 7 Yes | 1 No |
Answer / tajinder arora
Capital reserve is a type of account on a company's balance
sheet that is reserved for long-term capital investment
projects or any other large and anticipated expense(s) that
will be made in the future. This type of reserve fund is
set aside to ensure that the company or municipality has
adequate funding to at least partially finance the project.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / thimmappa poojari
Capital Reserve is the reserve created by the Accumulated
capital surplus (NOT REVENUE SURPLUS) viz: amount available
from appreciation of any capital assets by revaluation to
reflect current market value of such assets. The apprecated
amount is added to Capital reserve so that the same can be
adjusted to when revaluation loss occures (adjustment can
be done for past or future revaluation loss), or can be
utilsed for any investment in capital assets/ capital
expneses. However the same can never be used for any
revenue income / expenses. Even payamnet of dividends to
shareholders can not be adjsuted or can not be paid from
such reserve.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / anil
its reserve genereted when ammalganation take place. when
pc is smaller than net assets purchased
| Is This Answer Correct ? | 4 Yes | 3 No |
Answer / akanksha saini
ans .Resource created by the accumulated capital surplus (not
revenue surplus) of a firm, such as by an upward revaluation
of its assets to reflect their current market value after
appreciation. Allocating such sums to capital reserve means
they are permanently invested and will not be paid as
dividends.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / gandham subbarao
the reserve which transferred from the capital gains is
called capital reserve
| Is This Answer Correct ? | 0 Yes | 1 No |
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