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Differences

Marimuthu (Manager) (525 Points)

17 May 2018

Sir/Madam,

Kindly explain the differences between
1. Capital Reserve.
2. Reserve Capital.

Thank you.

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3 Replies

Sana Sultana Mussu (Student) (5119 Points)
Replied 17 May 2018

1."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.
2.Reserve Capital shows the part of the authorized capital that has not yet called up by the company and may be called up on liquidation..

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Marimuthu (Manager) (525 Points)
Replied 18 May 2018

Thank you

Jatin Bajaj (CS) (2930 Points)
Replied 18 May 2018

Capital reserves are those reserves which are maintained by the Company for some special purpose. these profits earned by the Company are used not for distribution of dividends to shareholders

While Reserve capital is the part of the Authorized capital which has not been called up yet