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What is the difference between Capital Reserve and Reserve
Capital?
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Answer / sai keerthi
CAPITAL RESERVE a company may decide by passing a special resolution that a certain portion of its subscribed uncalled capital shall not be called-up except in the event of winding up of the company.It may be called-up in the case of liquidation of the company CAPITAL RESERVE refers to that amount which is not regarded as free for distribution to shareholders by way of dividend.It is statutory to create capital reserve in the case of profit on forfeited shares.Capital reserve is required to be disclosed as the first item under the head of 'reserves & surplus' on the liabilities side of the balance sheet. This cannot be used during the lifetime of the company. Capital reserve is that amount which has already been realized. This cannot be used to writeoff capital losses. It can be used to declare a bonus shares.
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Answer / kamal sandhu
capital reserve is a part of & maintain when the profits r
arise then the fixed asset r solt & at the time of
forfieture.
reserve capital is a part of the authorised capital of the
company which not yet called up.
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Answer / suraj somani
Reserve capital - this reserve cannot be called up except in the case of winding up of the co.
Special resolution is required to create such type of reserve.
Capital reserve - capital reserves are created from capital gains or profits for some specific purpose.
Eg. Declaration of dividends
In this case co. Cannot use this reserve for other purposes other than dividend .
No special resolution required..
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Answer / arvind sharma
Capital Reserve:- It is the the part of capital gains and it is created from capital gains in such a certain part like a fund for each year to show company profit and redemption efficiency to its share holders.
Reserve Capital:- It is authorised capiatl of a company not called up capital
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Answer / abc
Capital reserve is created from the capital gains.
reserve capital meens not called capital yet out of the par
value of share. The share holder has the obligation to the
reserve capital to company, when company called,Genrally at
the time of windingup of the company
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Answer / parul goyal
capital reserve is that amount which is not regarded as free for distribution or its created out of profits.It is disclosed under the head 'Reserve and Capital' on liablity side of balance sheet.Its necessary to create capital reserve and there is no special resolution required to create capital reserve.
Reserve Capital is that portion of uncalled share capital which shall not be capable of being called up.It is not disclosed in the balance sheet of company.Its not necessary to create reserve capital and no special resolution is required to create reserve capital.
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Answer / lakmal
Capital reserve creat by capital nature activities.. but this reserve can't use in any other businessrating actvities. But revenue reserve created normal business activities. It will use any other business activities.. It shows company performance....
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Answer / mohiyadheen chemban
Reserve Capital is the Part of Capital, From Authorized Capital Issue to public remaining is Reserve Capital. This Will use only at the time of Liquidation. This Amount Will not add in Balance Sheet. While Capital Reserve is created out of Capital Profit, it cannot distribute for Shareholders dividend, but it can use for Purchasing for Fixed Asset and writing off for Capital Loss. this Amount shown in Liability side of balance Sheet
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Answer / omprakash roul
reserve capital:It is that part of capital which is not issued and canbe issued only when company goes under liquidation.
Capital reserve:it is not earned by company in the normal course od business,rather,,it is created out of capital profit by the company.
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Answer / mandolica
Reserve capital:is the part of authorised pital of a firm
that has not been called up during its wining up.
Capital Reserve:the reserve created by the accumulated
capital surplus of the firm
| Is This Answer Correct ? | 3 Yes | 4 No |
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