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What is the difference between Capital Reserve and Reserve
Capital?
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Answer Posted / suraj somani
Reserve capital - this reserve cannot be called up except in the case of winding up of the co.
Special resolution is required to create such type of reserve.
Capital reserve - capital reserves are created from capital gains or profits for some specific purpose.
Eg. Declaration of dividends
In this case co. Cannot use this reserve for other purposes other than dividend .
No special resolution required..
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