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WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL
RESERVE?
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Answer / aruna
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 ? | 18 Yes | 1 No |
Answer / chaitanya
Reserve Capital is like uncalled capital from the public and it will be called according to the needs and means.
Capital Reserve is called as the surplus in Capital like over valuation of asset,showing more debtor balance.
A huge difference between both of them..
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / sricharan babu m
It is created by the accumulated capital surplus (not
revenue surplus) of a firm.Allocating such sums to capital
reserve means they are permanently invested and will not be
paid as dividends.
Reserve Capital: It is uncalled portion of capital of the
company and it will not call for payment except at the time
of windingup of the company.
| Is This Answer Correct ? | 0 Yes | 0 No |
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