Question

difference between capital reserve and reserve capital?????​

Answer 1

Answer:

The profit earned by the company through special transaction, that is not available for distributing dividend to shareholders is known as Capital Reserve. Whereas, The part of uncalled capital, that is called up only on the event of company's liquidation is known as Reserve Capital.

Answer 2

Capital Reserve is created out of Capital Profits like profit on sale of Fixed Assets. Whereas, Reserve Capital is created out of the Authorised Capital