What's are difference between Capital Reserve & Reserve
Capital ?
Answer Posted / y.neelam kumar
capital reserve is the profit which can be distributed as
dividend to the shareholders
reserve capital will have the amount which is transferred
from the capital reserve for some reason and the amount in
the reserve capital will never be used for the distribution
of dividend and the example for the reason is assume that
the company is redeeming debenture and the cash related to
debentures are invested in some projects and the company
redeem the debenture with the help of cash relating to the
capital reserve and now the company will take the amount
relating to the cash of the capital reserve which was used
in the redemption of the debentures and transfer to the
reserve capital because in future by mistake the company
should not declare dividend more then the cash available in
capital reserves
Is This Answer Correct ? | 2 Yes | 3 No |
Post New Answer View All Answers
What is an internal audit and what is the role of internal audit?
Explain the different advantages and disadvantages of internal audit?
what percent of wages calculate from sales of a firm (registered under manufacturing of machinery spares) sales (appr)- RS.10000000/-
Why you want to be a auditor?
What should the internal auditor?
What are objectives of internal audit?
Do you know what are the reasons for getting audited?
What is the mean of statutory audit?
What are the different types of audits?
what audit procedure i can do in the share capital account of a company and why it have been apply?
Whats are the importance of evaluating an internal audit department?
What is audit control procedure?
What do you know about KPMG?
accounting & audit system of film production enterprises
what is the difference you can make by doing your course in the country of your choice