Answer Posted / 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.

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