Accountancy, asked by bainsjashan, 11 months ago

what is capital reserve ? with examples .

Answers

Answered by Anonymous

hey mate..your answer:-

Definition of Capital Reserve:-

Capital Reserve can be understood as the sum earmarked for specific purposes or long term projects. It is the result of capital profit that is earned by the company from transactions of capital nature, such as:

Example:- Profit on sale of fixed assets or investment.

Answered by felix23199p895bt

maintaining some portion of profit for further needs

Explanation:

it is the process of safekeeping some amount on profit earned to deal with long term projects or investment in future by the company. generally reserve promotes liquidity.

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