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what is difference between capital reserve n reserve capital?
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Answer / babhu kanchupalli
Capital reserve is prepared by the capital income......
Ex: profit on sale of fixed assets etc.
Some amount kept aside from capital to face future contingencies is called Reserve capital........
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Answer / bindiya kushwaha
Difference Between Capital Reserve and Reserve Capital. ... A portion of profit set aside that can be used for specific purposes only is known as Capital Reserve. Reserve Capital is that form of uncalled share capital that can be called up by the company only in the event of the liquidation of the company.
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Answer / 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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