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17 January 2011 Difference between General Reserve and Capital Reserve

17 January 2011 capital reserve is created , while revaluation of assets.

General reserve is appropriation of profit as per compnaies act provisions.

17 January 2011
Capital Reserve:-

Capital reserve is a reserve created to deal with general, unspecified contingencies. It is a fund set aside for the specific purpose and can not be distributed for other uses. Normally it is legally not distributable as dividends to shareholders..

General Reserve :-

It is an appropriation of profit. and it is available for distribution as dividend..




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