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What is the difference between Capital Reserve and Reserve
Capital?
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Answer Posted / 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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