What is Capital reserve and Revenue reserve...?
Any example would be highly appreciated.
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Answer / prakash
Capital reserve means reserve generated from Capital
Profit.While Revenue reserve means Reserve generated from
revenue Profit.i.e.from usual course of business
| Is This Answer Correct ? | 50 Yes | 13 No |
Answer / deepak n. kolekar
Capital reserve means which comes from dealing with capital
profits. the capital profits can be incurred from like
selling of assets, buying of firm, etc. It means, capital
profits are those which are not incurred from our own
regular dealing.
Revenue Reserve are completely generating from our revenue
profit. revenue profits means the only profit incurred from
the selling of goods.
| Is This Answer Correct ? | 24 Yes | 12 No |
Answer / zahra abbas
Capital reserve is a reserve created to deal with general,
unspecified contingencies such as inflation. It is a fund
set aside for the specific purpose and can not be
distributed for other uses. Normally it is legally not
distributable as dividends to shareholders
Revenue reserve on the other hand is distributable to
shareholders as dividends, for example, the profit and loss
account, general reserve.
| Is This Answer Correct ? | 11 Yes | 2 No |
Answer / ruben
Capital reserve denotes funds set aside out of profits
generated from exceptional transactions not occuring in
ordinary courseof business.e.g sale of Assets (being a
going concern), Profits arising in Forfeiture of Shares due
to non payment of calls in arrear etc.They are not
available for distribution to share holders in normal
circumstances.
Revenue reserve denotes profits set aside from transactions
involving ordinary & usual business activities.e.g sale of
goods & services, investment profits if it is in ordinary
course of business etc.They are available for distribution
to share holders in normal circumstances.
| Is This Answer Correct ? | 12 Yes | 5 No |
Answer / deepak choudhary
capital reserve means profits which are not available for distribution among owners,,,,,it includes only those profits which doesnot require a seperate disclosure for example profit on reissue of shares it is used for various purposes like writing off premium on redemption of debenture,fictitious assets etc...
| Is This Answer Correct ? | 1 Yes | 1 No |
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