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Reserve

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(Querist)
17 January 2011 Difference between General Reserve and Capital Reserve
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
17 January 2011 capital reserve is created , while revaluation of assets.

General reserve is appropriation of profit as per compnaies act provisions.
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CA. Praveen Narayan

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CA. Praveen Narayan (Expert)
17 January 2011
Capital Reserve:-

Capital reserve is a reserve created to deal with general, unspecified contingencies. 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 an appropriation of profit. and it is available for distribution as dividend..
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