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WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL
RESERVE?
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Answer Posted / 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
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