Answer Posted / mihir vankani

If the board of directors feels that in future the company
may not need the share capital which is not yet called up,
the company may pass a special resolution in the general
meeting of the shareholders stating that it will not demand
for the uncancelled amount on shares unless and until the
company is liquidated. This particular amount of
uncancelled share capital in this case is known as RESERVED
CAPITAL.

If we consider RESERVED CAPITAL from the view point of
creditors, it becomes a very big security. But from the
view point of the shareholders, this may be considered as a
liability. Offcourse, the amount is not called up till the
company's liquidation; thus, so far shareholders are not
worried.

THERE MUST BE A PROVISION IN THE ARTICLES OF ASSOCIATION OF
A COMPANY REGARDING RESERVED CAPITAL.

Lets talk about CAPITAL RESERVE now. Capital reserve is a
fund created from a special type of profit. Plz note that
revenue profit is NOT considered a part of this one.
Capital reserve examples are as follows:

1. Share premium received for issuing shares at premium.

2. Debenture premium

3. Profit realised after revaluation of company assets.

Normally, capital reserve is utilised to write off
fictitious assets.

honararium for the month of march 2013 can be paid on 31 mar 2013

2092

---

Whether construction of office cum storage comes under CMA under Agriculture or Non Farm Sector

1618

---

Short Answer on -----Trade mark

1855

---

i want know how to calculate it in payroll please mail me the percentages using there ?

2022

---

What is Accounting on Computers

1948

---

Expand------ARN

2428

---

3. You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.

2139

---

What is the rule on a school who will be handled by anither school? How do I calculate the royalty per year to the school who will supervise a new school

1950

---

after directing tally 9 to calculate interest as per 30 day option basis on a loan account.........,it still calculates interest as per calender month when checked on to display>statements of accounts>interest payable in tally 9 ...where is the error?? how to correct the function.

2323

---

when assessing the credit proposal of a prospective borrower if he gets internal rating below the hurdle rate what will you suggest as a banker

2057

---

Tell me about how you have left a position better than you found it

1947

---

If income and expense both are equal then what it depicts

1887

---

Expand--------CMTS

2328

---

what is the main link between the income statement and the balance sheet?

2073

---

how to do the finalise of account? what is the step? why we need to do like that?

2002

---