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WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL
RESERVE?
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yes there is a difference between reserve capital and
capital reserve that is capital reserve is the reserve of
the firm and reserve capital is part of authorised capital
not called up
| Is This Answer Correct ? | 53 Yes | 14 No |
Answer / vadlakondav
capital reserve is a reserve created to deal with general,
unspecified contingencies such as inflation.Normally it is
legally not distributable as dividends to shareholders
revenue reserve on the other hand is distributable to
shareholders as dividends, for example, the profit and loss
account, general reserve.
| Is This Answer Correct ? | 29 Yes | 12 No |
Answer / kiran kumar``
Reserve Capital is the Authorised capital which is not yet
Called-up.
Capital Reserve is created out of Capital profit, to meet
the Capital losses or expenditures.
| Is This Answer Correct ? | 19 Yes | 4 No |
Answer / sachindra kumar rai
Reserve Capital
A limited company may, by special resolution, determine
that any portion of its share capital which has not been
called up shall not be capable of being called up, except
in the event and for the purpose of the company being wound
up, and thereupon that portion of its share capital shall
not be capable of being called up except that event for
those purposed.
Capital reserve
A reserve is not available for distribution as dividend.
Capital Reserve- Reserve created by the accumulated capital
surplus.
The company in general meeting may, upon the recommendation
of the Board, resolve that to capitalise any part of the
amount for the time being standing to the credit of any of
the company’s reserve accounts, or to the credit of the
profit and loss account, or otherwise available for
distribution.
| Is This Answer Correct ? | 16 Yes | 1 No |
Answer / jitendra kumar jain
capital reserve is a reserve is is created out of capital
gain of the firm like appreciation in land value
while reserve captal is earmarked part of authorised
capital which is not called yet.
| Is This Answer Correct ? | 7 Yes | 2 No |
Answer / sangeetha
Reserve Capital is the Authorized capital which is not yet
Called-up and reserved which is called up at the time of
winding up of the company. Capital reserve is created out of
capital profit to meet capital expenditure.Capital reserve
is a reserve which is not free for
distribution as dividend.
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / eshwar.p
Capital reserve is created out of capital profits (profit
due to reevaluation of assets) and therefore it is not
available for distribution as dividend to the shareholders,
while reserve capital is that part of authorized capital of
a company which is not called up by the company. Also there
is no special resolution required as in the case of reserve
capital, for creating capital reserve
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / jnr
capital reserve is the reserve of
the firm and reserve capital is part of authorised capital
not called up.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / deepak sharma
Reserve capital is the capital which can be called only at
the time of liquidation of company or for the purpose of
liquidation.
Capital reserve is a reserve which is not free for
distribution as dividend.
| Is This Answer Correct ? | 4 Yes | 5 No |
Answer / radha
reserve capital is that portion of the capital that is not
yet issued or used .it is that which is reserved for the future.
while reserve capital is that reserve created out of capital
profits transferred.eg share premiu.
| Is This Answer Correct ? | 2 Yes | 4 No |
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