Scribd Logo
Upload

Welcome to Scribd!

  • Many People Think That Both Capital Reserve and Reserve Capital Are Same and There Are No Differences Between The Two

    Uploaded by

    adtyshkhr
    4 views3 pages
    1. Capital reserve is created from capital profits and is not available for distribution as dividends, while reserve capital is part of authorized capital that has not been called up by the company. 2. Reserve capital can only be used for liquidation, while capital reserve can be used to purchase long-term assets. 3. Capital reserve is shown as a liability, while reserve capital is not disclosed on the balance sheet. 4. Capital reserve can be used to write off capital losses from asset sales, while reserve capital cannot be used for this purpose.

    Original Description:

    f

    Original Title

    Many people think that both capital reserve and reserve capital are same and there are no differences between the two.docx

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1. Capital reserve is created from capital profits and is not available for distribution as dividends, while reserve capital is part of authorized capital that has not been called up by the company. 2. Reserve capital can only be used for liquidation, while capital reserve can be used to purchase long-term assets. 3. Capital reserve is shown as a liability, while reserve capital is not disclosed on the balance sheet. 4. Capital reserve can be used to write off capital losses from asset sales, while reserve capital cannot be used for this purpose.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views3 pages

    Many People Think That Both Capital Reserve and Reserve Capital Are Same and There Are No Differences Between The Two

    Uploaded by

    adtyshkhr
    1. Capital reserve is created from capital profits and is not available for distribution as dividends, while reserve capital is part of authorized capital that has not been called up by the company. 2. Reserve capital can only be used for liquidation, while capital reserve can be used to purchase long-term assets. 3. Capital reserve is shown as a liability, while reserve capital is not disclosed on the balance sheet. 4. Capital reserve can be used to write off capital losses from asset sales, while reserve capital cannot be used for this purpose.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Many people think that both capital reserve and reserve capital are same and there are

    no differences between the two, which is not correct, they both are different from each other 1. Capital reserve is created out of capital profits (profit due to reevaluation of assets) and therefore it is not available for distribution as dividend to the shareholders, while reserve capital is that part of authorized capital of a company which is not called up by the company. Also there is no special resolution required as in the case of reserve capital, for creating capital reserve 2. Reserve capital can be used by the company only in case of liquidation of the company while capital reserve can be used by company at any time for purchasing long term assets by the company. 3. Capital reserve is shown on the liabilities side of the balance sheet while Reserve capital is not disclosed in the balance sheet of the company. 4. Capital reserve can be used by the company to write off capital losses which arises due to selling of assets at lower prices than the book value of that asset while Reserve capital cannot be used for that purpose.

    Definition of 'Capital'
    1. Financial assets or the financial value of assets, such as cash. 2. The factories, machinery and equipment owned by a business and used in production. Capital can mean many things. Its specific definition depends on the context in which it is used. In general, it refers to financial resources available for use. Companies and societies with more capital are better off than those with less capital.

    Ratio Analysis,

    Acc. Std's, Latest Acc'ing updates, Business Law, Investment Mgmt

    What is accounting What do you understand by Working Capital Management (WCM)? What are Contingent liabilities

    What is marginal costing? what is the capital what is reserve capital

    matching concept what is private placement? what is capital reserve? What is the new name for Stock exchanges ? (recently) What is Contribution? what is portfolio management? What are quick assets? Give me some examples Differences between forward contract and futures contract? What is goodwill? How do u calculate it? What do u you mean by deferred revenue expenditure? What is the difference between Capital expenditure and Revenue expenditure?

    You might also like