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What is capital reserve and reserve capital?
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Answer / deepak choudhary
capital reserve is that type of reserve which consist profits which are not distributable among ownerit includes only those type of profit which does not require a seperate disclosure for eg:-profit on reissue of shares... this reserve is used only for special purposes like writing off premium on redemption of debenture,fictitious assets etc
while
reserve capital is that part of capital which is reserved by the company and to be called by the company only at the time of liquidation ,,,this capital require a special resolution which specify the amount to be called at the time of liquidation..
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Answer / inderdeep singh
capital reserve is a resource created by the accumulated capital surplus (not revenue surplus) of an organization, such as by an upward revaluation of its assets to reflect their current market value after appreciation and reserve capital is portion of uncalled capital which can be called at certain point of time.
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