what is difference between capital reserve n reserve capital?
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Answer Posted / sandeep.
Capital reserve is not built out of regular business, or
operaating business.. for ex:: profit by sale of fixed asset
or revaluation these will be capital profit.
capital reserve is, a part of capital will kept as reserve, it
will be called at a certain time or happening of a cretain
event. for ex 5 rs. face value shares, company will call for
only 3 rs.. 2 rs. will be kept as reserve capital.
thanks,
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