Question

What is meant by reserve capital ?​

Answer 1

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assets set aside by a joint-stock enterprise or a bank for certain purposes or as a general reserve (declared reserves). Reserve capital and fixed capital constitute the assets available to an enterprise (or bank) but not subject to distribution among the stockholders.

Answer 2

Answer:

It refer to that portion of increased nominal capital or uncalled share capital which shall not be called up except in the event of winding up .

It is not necessary to create reserve capital

a resolution is required for its creation

It is not shown in company's balance sheet

Explanation: