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diff bw capital reserve and reserve capital
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diff bw capital reserve and reserve capital
Capital Reserve:
It is a Reserve but made out of surplus which were capital in nature to meet future capital requirements and is reflected on the face of Balance sheet.
Reserve Capital.
If Board of a listed company decides not to make any further calls on partially paid up shares and passes a resolution that such portion of uncalled Capital would be called upon only on event of Dissolution of company then it is called Reserve Capital. For example- if a share of face value 10, of which only 7 is called up and paid up , further board decides not to call the remaining 3 and passed a resolution to convert it into Reserve Capital .
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diff bw capital reserve and reserve capital
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