what is reserve capital
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Reserve Capital is that form of uncalled share capital that can be called up by the company only in the event of the liquidation of the company. Capital Reserve the result of accumulating capital profit, whereas Reserve Capital is created out of authorized capital.
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“Capital Reserve” means the part of profit reserved by the company for a particular purpose such as to finance long-term projects or to write off capital expenses. ... Reserve Capital shows the part of the authorized capital that has not yet called up by the company and is available for drawing, if necessary.
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