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difference between Reserve capital and capital reserve

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difference between Reserve capital and capital reserve..

Answer / dharmendra jha

Reserve capital if that part of reserve which may use on
the event of winding off the company .... but capital
Reserve is a part of profit..........

Is This Answer Correct ?    76 Yes 6 No

difference between Reserve capital and capital reserve..

Answer / geethamruth

As per Companies Act 1956,
1.Reserve capital refers to that part of share capital which can be called only at the time of winding up of the company.this is created in-order to provide greater security to the outside creditors against the risk of non-availability of cash to them for satisfaction of their claims.
2.On the other hand Capital reserve means profits which cannot be distributed as dividend because they arised on capital items.Ex:balance in share forfeiture account after setting off discount on reissue of shares when all shares forfeited are reissued
NOTE:AS PER COMPANIES ACT 1956,CAPITAL PROFITS RECEIVED IN CASH CAN BE DISTRIBUTED AS DIVIDEND

Is This Answer Correct ?    26 Yes 3 No

difference between Reserve capital and capital reserve..

Answer / rajesh

the term reserve capital which is not called except in the
case of winding up
whereas capital reserve is a reserve which is a raised from
sale of fixed asset

Is This Answer Correct ?    29 Yes 16 No

difference between Reserve capital and capital reserve..

Answer / indira

RESERVE CAPITAL IS THE UNCALLED CAPITAL WHICH THE
SHAREHOLDERS CANNOT BE CALLED UPON TO PAY UNLESS THE
COMPANY GOES INTO LIQUIDATION.

CAPITAL RESERVE IS CREATED OUT OF PROFITS OF A CAPITAL
NATURE.EG;PREMIUMS RECEIVED ON THE ISSUE OF SHARES AND
DEBENTURES,SELLING A FIXED ASSET AT A HIGHER PRICE THAN ITS

BOOK VALUE etc

Is This Answer Correct ?    2 Yes 1 No

difference between Reserve capital and capital reserve..

Answer / ravindra

reserve- some amount is kept as reserve for future occuring loss

capital - amount invested by the sole trader in the business

capital reserve - some part of the amount is kept as a reserve from capital for meeting of future loss

Is This Answer Correct ?    2 Yes 6 No

difference between Reserve capital and capital reserve..

Answer / guest

amount set aside out of profit for future use.

Is This Answer Correct ?    4 Yes 9 No

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