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Anyone can tell me the exact difference between capital reserve and reserve capital. As I can't get it clear from book.?
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Anyone can tell me the exact difference between capital reserve and re...
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
Anyone can tell me the exact difference between capital reserve and re...
Reserve capital is that part of uncalled capital which cannot be called up except in the event of winding up. and Capital Reserve is that part of Reserve which is not free for distribution as dividend.
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Anyone can tell me the exact difference between capital reserve and reserve capital. As I can't get it clear from book.?
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