what is the difference between capital reserve and reserve and surplus
thanks and regard
abid
CA Akshat
(article)
(422 Points)
Replied 24 April 2008
reserve and surplus are free reserve and arise out of the profit (which is revenue profit) some portions of profit are transferred to reserve and surplus
capital reserve arise out of the capital profit like sale of fixed assets etc.
dividendcan be declared from free resrve whereas from capital reserve declaration of dividend is restricted
CAclubindia
