18 January 2011
capital reserve is a reserve created to deal with general, unspecified contingencies such as inflation.Normally it is legally not distributable as dividends to shareholders
revenue reserve on the other hand is distributable to shareholders as dividends, for example, the profit and loss account, general reserve.
Capital reserve is a reserve created to deal with general, unspecified contingencies such as inflation. It is a fund set aside for the specific purpose and can not be distributed for other uses. Normally it is legally not distributable as dividends to shareholders
General reserve It is a reserve created by transferring certain amount of undistributed profit for funding expansion, acquisition, paying dividends, discharging of liabilities, writing off extraordinary and/or contingent losses, buyback and/or redemption of securities
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