what is the differance b\w reserve capital and capital reserve
Krishna Teja
(Chartered Accountant)
(1007 Points)
Replied 17 December 2010
RESERVE CAPIAL(sec 99)-it is the portion of uncalled share capital which shall not be capable of being called up except in the event of winding up of company
SR is required for its creation(it is not compulsory)
CAPITAL RESERVE-it refers to those amounts which are not regarded as free for distribution by way of dividend through profit and loss account
it is mandatory in some circumstances (like profit on forfeited shares)
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 17 December 2010
| Originally posted by : krishna teja | ||
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RESERVE CAPIAL(sec 99)-it is the portion of uncalled share capital which shall not be capable of being called up except in the event of winding up of company SR is required for its creation(it is not compulsory) CAPITAL RESERVE-it refers to those amounts which are not regarded as free for distribution by way of dividend through profit and loss account it is mandatory in some circumstances (like profit on forfeited shares) |
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AGREED
Resham
(Carpe Diem !!!)
(6535 Points)
Replied 17 December 2010
Reserve Capital --
1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company.
2. It is not mandatory to create reserve Capital.
3. It s not shown in the company's balance sheet.
4. A special resolution needs to be passed for its creation.
5. Can be used only at the time of winding up of company.
Capital Reserve --
1. it refers to those amounts which are not free for distribution as dividend.
2. It is mandatory to create Capital reserve in case of profit on forfeited shares.
3. It is shown in balance sheet.
4. No special resolution required.
5. Can be used to write off capital losses at any time during the life of a company.
| Originally posted by : Resham | ||
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Reserve Capital -- 1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company. 2. It is not mandatory to create reserve Capital. 3. It s not shown in the company's balance sheet. 4. A special resolution needs to be passed for its creation. 5. Can be used only at the time of winding up of company. Capital Reserve -- 1. it refers to those amounts which are not free for distribution as dividend. 2. It is mandatory to create Capital reserve in case of profit on forfeited shares. 3. It is shown in balance sheet. 4. No special resolution required. 5. Can be used to write off capital losses at any time during the life of a company. |
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yup ryt and agreed
Kashish Grover
( CA-FINAL, CS-FINAL)
(1671 Points)
Replied 17 December 2010
| Originally posted by : Resham | ||
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Reserve Capital -- 1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company. 2. It is not mandatory to create reserve Capital. 3. It s not shown in the company's balance sheet. 4. A special resolution needs to be passed for its creation. 5. Can be used only at the time of winding up of company. Capital Reserve -- 1. it refers to those amounts which are not free for distribution as dividend. 2. It is mandatory to create Capital reserve in case of profit on forfeited shares. 3. It is shown in balance sheet. 4. No special resolution required. 5. Can be used to write off capital losses at any time during the life of a company. |
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100% agreed
CA Deepesh Ruhela
(Keen to Learn)
(3271 Points)
Replied 19 December 2010
| Originally posted by : Resham | ||
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Reserve Capital -- 1. It refers to that portion of uncalled capital which is not called up except in the event of winding up of the company. 2. It is not mandatory to create reserve Capital. 3. It s not shown in the company's balance sheet. 4. A special resolution needs to be passed for its creation. 5. Can be used only at the time of winding up of company. Capital Reserve -- 1. it refers to those amounts which are not free for distribution as dividend. 2. It is mandatory to create Capital reserve in case of profit on forfeited shares. 3. It is shown in balance sheet. 4. No special resolution required. 5. Can be used to write off capital losses at any time during the life of a company. |
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agree
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