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Treatment of capital reserve

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[face=Arial][size=14][color=black]I want to Know about the treatment of copital reservein case of liquidation of company if surplus fund are available after settelment of outside liabilities.[/face][/size][/color]
Replies (2)
capital reserve account is a part of shareholders networth just like general reserves and thus need to be treated similarly. presence or absence of capital reserve will in no way alter the distribution of surplus funds

Many auditing firms prepare as per tax laws and company laws. They prescribe what is a mandatory reserve. Accounting wise, you have few heads as well. The recent indas has only few heads, segregation or combination is easy if you go through it. 


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