cap. reserve

Internal Audit 1215 views 1 replies

what is the difference between capital  reserve and reserve and surplus

thanks and regard

abid

Replies (1)

reserve and surplus are free reserve and arise out of the profit (which is revenue profit) some portions of profit are transferred to reserve and surplus

capital reserve arise out of the capital profit like sale of fixed assets etc.

dividendcan be declared from free resrve whereas from capital reserve declaration of dividend is restricted


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