Answer Posted / mihir vankani

If the board of directors feels that in future the company
may not need the share capital which is not yet called up,
the company may pass a special resolution in the general
meeting of the shareholders stating that it will not demand
for the uncancelled amount on shares unless and until the
company is liquidated. This particular amount of
uncancelled share capital in this case is known as RESERVED
CAPITAL.

If we consider RESERVED CAPITAL from the view point of
creditors, it becomes a very big security. But from the
view point of the shareholders, this may be considered as a
liability. Offcourse, the amount is not called up till the
company's liquidation; thus, so far shareholders are not
worried.

THERE MUST BE A PROVISION IN THE ARTICLES OF ASSOCIATION OF
A COMPANY REGARDING RESERVED CAPITAL.

Lets talk about CAPITAL RESERVE now. Capital reserve is a
fund created from a special type of profit. Plz note that
revenue profit is NOT considered a part of this one.
Capital reserve examples are as follows:

1. Share premium received for issuing shares at premium.

2. Debenture premium

3. Profit realised after revaluation of company assets.

Normally, capital reserve is utilised to write off
fictitious assets.

what is the procedure for issuing th C form

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please answer this question.the following balances were extracted from the books of modern traders on 31st dec,2010.capital(85000)fixed assets(45000)stock1-1-2010(15000)sundry debtors(20600)productive exp(3300)reserves fund(6600)discount received(800)cash in hand(6200)drawing(5000)accomulated dep.(9000)purchases(82000)bad debts(400)unproductive exp.(27400)sundry creditors(9000)sales(120000)cash at bank(25500).adjustments.stock on 31-12-2010(15000).outstanding wages (5000) write-off (600)of further bad debts. create provision for bad & doubtful debts at {5%) on debtors.unproductive expenses includes anitem of prepaid insurance (100).provide depreciation on original cost of fixed assets @ (10%).

2449

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What is the value of inventory as per Financial Accounts (AS2) and as per Cost accounts? Someone told me that as per cost accounts only works costs is considered in CARR while for FA, AS2 is followed with cost or NRV whichever is lowewr? Please explain the difference.

2275

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distinguish between price rate and time rate?

2110

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what is undisclosed profit? explain

2400

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If we spend a sum of Rs.10 Lacs towards Processing and Upfront fee for obtaining working capital term loan. can we treat this amount as a deferred revenue expenditure or not

2088

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Short Answer on __________Leverage

2163

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Workers name-Madhu Saha.Pay structure,basic-5850,HRA-1350,CCA-900,TRAV.ALLOW.900.DEDUCTION-PF-702.ESI-150,P.TAX-90.WHAT IS THE EXTRACT IN PF,ESI,IN BALANCE SHEET & sALARY IN p/l A/C . iS IT POSSIBLE THAT PERSONS'S NAME SHOUL COME I P/L

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interest paid comes under which head

1493

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How can i prepare MIS report for Finance?

2454

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reason for difference in Balance sheet (Asset side & Liabilites side)

2036

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Dear sir, I have complete B.com in march 2007, for past 4year i am doing some marketing jobs in insurance sector, now i need to change my job in accounting sector, i have heard that by doing SAP Fico there will be better opurtunity in corporate companies.

1933

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Expand BFSI

2162

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Have you worked with other on team endeavors

2018

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What is COVER payment?

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