what is the differance b\w reserve capital and capital reserve
RESERVE CAPIAL(sec 99)-it is the portion of uncalled share capital which shall not be capable of being called up except in the event of winding up of company
SR is required for its creation(it is not compulsory)
CAPITAL RESERVE-it refers to those amounts which are not regarded as free for distribution by way of dividend through profit and loss account
it is mandatory in some circumstances (like profit on forfeited shares)
| Originally posted by : krishna teja | ||
![]() |
RESERVE CAPIAL(sec 99)-it is the portion of uncalled share capital which shall not be capable of being called up except in the event of winding up of company SR is required for its creation(it is not compulsory) CAPITAL RESERVE-it refers to those amounts which are not regarded as free for distribution by way of dividend through profit and loss account it is mandatory in some circumstances (like profit on forfeited shares) |
![]() |
AGREED
Reserve Capital --
1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company.
2. It is not mandatory to create reserve Capital.
3. It s not shown in the company's balance sheet.
4. A special resolution needs to be passed for its creation.
5. Can be used only at the time of winding up of company.
Capital Reserve --
1. it refers to those amounts which are not free for distribution as dividend.
2. It is mandatory to create Capital reserve in case of profit on forfeited shares.
3. It is shown in balance sheet.
4. No special resolution required.
5. Can be used to write off capital losses at any time during the life of a company.
| Originally posted by : Resham | ||
![]() |
Reserve Capital -- 1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company. 2. It is not mandatory to create reserve Capital. 3. It s not shown in the company's balance sheet. 4. A special resolution needs to be passed for its creation. 5. Can be used only at the time of winding up of company. Capital Reserve -- 1. it refers to those amounts which are not free for distribution as dividend. 2. It is mandatory to create Capital reserve in case of profit on forfeited shares. 3. It is shown in balance sheet. 4. No special resolution required. 5. Can be used to write off capital losses at any time during the life of a company. |
![]() |
yup ryt and agreed
| Originally posted by : Resham | ||
![]() |
Reserve Capital -- 1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company. 2. It is not mandatory to create reserve Capital. 3. It s not shown in the company's balance sheet. 4. A special resolution needs to be passed for its creation. 5. Can be used only at the time of winding up of company. Capital Reserve -- 1. it refers to those amounts which are not free for distribution as dividend. 2. It is mandatory to create Capital reserve in case of profit on forfeited shares. 3. It is shown in balance sheet. 4. No special resolution required. 5. Can be used to write off capital losses at any time during the life of a company. |
![]() |
100% agreed
| Originally posted by : Resham | ||
![]() |
Reserve Capital -- 1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company. 2. It is not mandatory to create reserve Capital. 3. It s not shown in the company's balance sheet. 4. A special resolution needs to be passed for its creation. 5. Can be used only at the time of winding up of company. Capital Reserve -- 1. it refers to those amounts which are not free for distribution as dividend. 2. It is mandatory to create Capital reserve in case of profit on forfeited shares. 3. It is shown in balance sheet. 4. No special resolution required. 5. Can be used to write off capital losses at any time during the life of a company. |
![]() |
agree
Your are not logged in . Please login to post replies
Click here to Login / Register
CA Suraj Garg & Associates
New Delhi
CA Final
View Details
Abic and Mani Chartered Accountants
Kottayam
B.Com
View Details
CCI
Pro
India's largest network for
finance professionals