Can anyone post the differences between capital reserve and general reserve???
If possible, in columnar form...
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Difference
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Regards,
Abhi
Capital reserve is a reserve to which Capital profits are credited like Amount Partly Recieved on Shares on forfieted shares etc. It is not available for distribution as dividend much like Securities Premium. It can however be used for Issue of Bonus Shares etc.
The net profits of the company are transferred to General Reserve. It can be used for Dividend distribution.
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