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WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL
RESERVE?
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Answer Posted / sricharan babu m
It is created by the accumulated capital surplus (not
revenue surplus) of a firm.Allocating such sums to capital
reserve means they are permanently invested and will not be
paid as dividends.
Reserve Capital: It is uncalled portion of capital of the
company and it will not call for payment except at the time
of windingup of the company.
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