3 OR 4 SOURCES TO CREAT CAPITAL RESERVE..
CA abhinandan agarwal (CA CS Bcom(H)) (174 Points)
14 March 20113 OR 4 SOURCES TO CREAT CAPITAL RESERVE..
Lalit Kumar
(Vice President )
(2213 Points)
Replied 14 March 2011
Capital Reserve- Reserve created by the capital surpluses( distinguished from the revenue surplus) of an organisation .
Examples:
Surplus resulting from revaluation of assets of the firm to its current market value;Surplus resulting from business
purchase-the value of assets being more than the consideration paid, Long term capital gains resulting from transfer of capital assets, surplus amount on forfeiture of shares,etc., are also examples of capital reserves.
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