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What's are difference between Capital Reserve & Reserve
Capital ?
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Answer / ca sreedhar
The profits of a company can be devided in to two
categories namely free reserves and capital reserves. Free
reserves are available to shareholders for distribution as
dividend. General Reserve, Profit and Loss account are the
examples for free reserves. Whereas Capital reserves arise
out of some specific transactions like issue of shares at
premium (Securities Premium), Profit on reissue of
forfeited shares, Profit on Revaluation of Fixed Assets,
Sale of part of an org at profit are the examples of
Capital reserve which are not available to shareholders for
the purpose of distribution of dividend. Threfore, Capital
reserves have the nature of capital eventhough they are
profits. Where as, Reserve Capital means that part of un
called share capital which may be reserved for to be called
only at the time of liquidation or winding up of company if
AoA authorises so.
| Is This Answer Correct ? | 27 Yes | 2 No |
Answer / ashok raniwal
When we sale our any fixed assets and from that transaction
we made a profit/gain, it would be transfer in capital
reserve.Where as, A part of share capital which would only
be call at the time of liquidation/widing of company.
| Is This Answer Correct ? | 24 Yes | 13 No |
Answer / n samraj
if the company is redeeming the money has go from reserve
capital created from capital reserves or general reserve.
how the can money going for redemption be accruing into
capital reserve when its going out.?
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / y.neelam kumar
capital reserve is the profit which can be distributed as
dividend to the shareholders
reserve capital will have the amount which is transferred
from the capital reserve for some reason and the amount in
the reserve capital will never be used for the distribution
of dividend and the example for the reason is assume that
the company is redeeming debenture and the cash related to
debentures are invested in some projects and the company
redeem the debenture with the help of cash relating to the
capital reserve and now the company will take the amount
relating to the cash of the capital reserve which was used
in the redemption of the debentures and transfer to the
reserve capital because in future by mistake the company
should not declare dividend more then the cash available in
capital reserves
| Is This Answer Correct ? | 2 Yes | 3 No |
Answer / h.r. sreepada bhagi
Refer the detailed answer by Mr. CA Sreedhar.
| Is This Answer Correct ? | 2 Yes | 4 No |
Answer / tataji
capital reserve means it is to increase capital source
ofthe firm.ie witch means to addtional source of the
capital .
reserve of the capital wich means it will healp full for
the recover of the shortage of capital. which means some
times firm want to increase capital that time it will healp
ful .
| Is This Answer Correct ? | 0 Yes | 3 No |
Answer / sridhar
capital reserve: it means the reserve which is created from
the capital gains.
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.
| Is This Answer Correct ? | 3 Yes | 8 No |
Answer / vijay
Capital Reserve is generated from the profits of the
copmpany.
I Don't Know Waht is Reserve Capital.
| Is This Answer Correct ? | 2 Yes | 11 No |
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