Accountancy, asked by ZafarRizvi, 1 year ago

What is the difference between Reserve Capital and Capital Reserve?

Answers

Answered by mTwinkle261
4
The profit earned by the company through special transaction, that is not available for distributing dividend to shareholders is known as Capital Reserve.

The part of uncalled capital, that is called up only on the event of company's liquidation is known as Reserve Capital.

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