Sir/Madam,
Kindly explain the differences between
1. Capital Reserve.
2. Reserve Capital.
Thank you.
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Differences
Replies (3)
1."Capital Reserve” means the part of profit reserved by the company for a particular purpose such as to finance long-term projects or to write off capital expenses.
2.Reserve Capital shows the part of the authorized capital that has not yet called up by the company and may be called up on liquidation..
2.Reserve Capital shows the part of the authorized capital that has not yet called up by the company and may be called up on liquidation..
Thank you
Capital reserves are those reserves which are maintained by the Company for some special purpose. these profits earned by the Company are used not for distribution of dividends to shareholders
While Reserve capital is the part of the Authorized capital which has not been called up yet
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