Capital Reserve- Reserve created by the accumulated capital
surplus( not the revenue surplus) of the firm e.g an upward
revaluation of assets by a firm to reflect its assets at
the current market values after appreciation.
Reserve Capital- Part of the authorized capital of a firm
which has not yet called up and is available for drawing in
case of need.
Capital reserve is created from the capital gains.
reserve capital meens not called capital yet out of the par
value of share. The share holder has the obligation to the
reserve capital to company, when company called.
RESERVE CAPITAL: Part of the authorized capital of a firm
that has not been called up and is, therefore, available
for drawing in case of a need.
CAPITAL RESERVE: capital reserve Resource created by the
accumulated capital surplus (not revenue surplus) of a
firm, such as by an upward revaluation of its assets to
reflect their current market value after appreciation.
Allocating such sums to capital reserve means they are
permanently invested and will not be paid as dividends.
Capital Reserve: Capital Reserve is surplus value that is
created at the time of revaluation of capital resources.
In other words Capital reserve is a increased value of
capital resources at present market valuation.
Reserve Capital: Reserve Capital is a Reserve amount of
capital that is not in use,that is used in future when
needed.for example The forfeiture amount of capital.
Kindly solve the following problem.
1. Bheema does not maintain his book in the double entry
system . His books showed following facts.
Receipts for the year ended 31.12.2007
from sundry Debtors
paid by bheema (proprietor)
payments made for the year ended 31.02.2007
new machinery purchased
Assets and Liabilities
As on 31.12.2006
As at 31.12.2007
from the Above data , prepare TRADING A/C, PROFFIT & LOSS
A/C for the year ended
31st december 2007 and the BALANCE SHEET as on on that date.
Kindly solve the problem