Question

capital reserve means​

Answer 1

Explanation:

A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit.

As an example, we can talk about profit on the sale of fixed assets, profit on a sale of shares, etc.It works in quite a different way. When a company sells off its assets and makes a profit, a company can transfer the amount to capital reserve.

Answer 2

Answer:

capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit.