Question

Capital reserves can be utilised for :
(A) issue of bonus shares
(B) meeting any future loss
(C) meeting specific purpose for which it is created
(D) None of the above

Answer 1

Answer:

your correct answer is issue of bonus shares

Answer 2

Answer:

b)

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