What is the difference between Capital Reserve and Reserve
Capital?
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Answer Posted / ujjal das- pgdm, vsbm
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.
| Is This Answer Correct ? | 41 Yes | 12 No |
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