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What is tha difference between capital reserve and reserve capital?
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What is tha difference between capital reserve and reserve capital?
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. If we reverse the words, then we get a new term “Reserve Capital”. The two terms might seem alike to a layman, but these are not one and the same thing, as they carry different meanings. Reserve Capital shows the part of the authorized capital that has not yet called up by the company and is available for drawing, if necessary.
Community Answer
What is tha difference between capital reserve and reserve capital?
capital reserve is out of capital profits and reserve capital is the uncalled subscribed capital which is to be called up by the company at the time of winding up dat is to be called up at the time of liquidation of assets
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What is tha difference between capital reserve and reserve capital?
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What is tha difference between capital reserve and reserve capital? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about What is tha difference between capital reserve and reserve capital? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is tha difference between capital reserve and reserve capital?.
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