Capital reserve
This query is : Resolved
CA Suresh Jain
(Expert)
11 August 2013
A resource created by the accumulated capital surplus (not revenue surplus) of an organization, such as by an upward revaluation of its assets to reflect their current market value after appreciation. Allocating such sums to capital reserve means they are permanently invested and will not be paid as dividends.
2. In simple words any reserve which is created for future Capital Expenditure or repairs and maintenance is a capital reserve.
2. In simple words any reserve which is created for future Capital Expenditure or repairs and maintenance is a capital reserve.
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11 August 2013
Reserves are retained in the business - they are not distributed to company owners.
These can be profits made by the business
sometimes referred to as retained earnings and
capital reserves which represent a perceived
increase the value of some fixed assets such as
land or buildings.
These can be profits made by the business
sometimes referred to as retained earnings and
capital reserves which represent a perceived
increase the value of some fixed assets such as
land or buildings.
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