Doubt regarding capital receipts

In ICWA's study material, it is given that
 "Capital receipts cannot be utilised to create a reserve fund" and also stated 
"Capital receipts are sources for creating capital reserves".... I am confused, for what type of reserves, capital receipts can be used??
 please can anybody clear my doubt..
Replies (1)

Dear 87pari,

 

There is a difference between the term "RESERVE FUND" AND  "CAPITAL RESERVE"

Reserve fund creation is towards specific investment (Sinking Fund)

and the same is not as Capital Reserve.

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