Accountancy, asked by z2ainiganjala, 1 year ago

Is capital reserve and reserve capital the same?

Answers

Answered by shubhammantri
4
#Capital Reserve means the part of profit reserved by the company for a particular purpose. If we reverse the words, then we get a new term 
#Reserve Capital At first instance, they will seem alike, but this is not so. Both the terms are not same as they carry different meanings. Reserve Capital shows the part of the authorized capital that has not yet called up by the company.
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Answered by aparnahvijay
0

Answer:

Explanation:

Capital and reserve are terms used in financial accounting. They differ from each other in that reserves are typically created through a business' profits, while capital is typically created by investors' capital contributions of cash, property or something else representing wealth.

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