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What is the difference between capital reserve and reserve capital ? ?
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What is the difference between capital reserve and reserve capital ? ?
A portion of profit set aside that can be used for specific purpose only known as capital reserve.Reserve capital is that form of uncalled share capital that can be called up by the company only in the event of the liquidation of the company.....
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What is the 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.
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What is the difference between capital reserve and reserve capital ? ?
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