General Reserve

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Ravi Jhamb

Ravi Jhamb (Querist)
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18 January 2011 Difference Between General Reserve and Capital Reserve with explain through appropriate eample

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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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.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 January 2011 thx experts.

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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