Difference
This query is : Resolved
04 July 2010
What is the difference between General Reserve and Capital Reserve define? We can show in Balance Sheet both items?
04 July 2010
Capital reserve is created out of capital profit to meet capital expenditure.Capital reserve is a reserve which is not free for
distribution as dividend. It is a Reserve created by the accumulated capital
surplus.
General reserve on the other hand is distributable to shareholders as dividends, it is the reserve of accumulated revenue profits.
distribution as dividend. It is a Reserve created by the accumulated capital
surplus.
General reserve on the other hand is distributable to shareholders as dividends, it is the reserve of accumulated revenue profits.
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