What's are difference between Capital Reserve & Reserve
Capital ?
Answer Posted / 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 |
Post New Answer View All Answers
A company charity (gross income 250k) wishes to take advantage of the audit exemption regime. However, there is an audit provision in the company's Articles. Should they be required to change the Articles?
What is non statutory audit?
What is an internal audit?
how to prepare the internal audit sheet ? explain me with example. (take example of LOGISTICS& SUPPLYCHAIN MANGEMENT COMPANY)
what are the main tools of auditing?
Explain intangible assets?
accounting & audit system of film production enterprises
who is the auditor and his deautis
what is the reason for controls in an IS environment?
What are the different advantages and disadvantages of internal audit?
What is the mean of internal audit?
What are objectives of internal audit?
How does the internal audit differ from an external audit?
what is the accounting treatment on Putoption over own shares.?
for how much loan a borrower has to submit QIS