What is the difference between Capital Reserve and Reserve
Capital?
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Answer Posted / mohiyadheen chemban
Reserve Capital is the Part of Capital, From Authorized Capital Issue to public remaining is Reserve Capital. This Will use only at the time of Liquidation. This Amount Will not add in Balance Sheet. While Capital Reserve is created out of Capital Profit, it cannot distribute for Shareholders dividend, but it can use for Purchasing for Fixed Asset and writing off for Capital Loss. this Amount shown in Liability side of balance Sheet
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