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What do you mean by reserve …

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What do you mean by reserve capital

Posted by Sourabh Halder 5 years, 3 months ago

CBSE > Class 12 > Accountancy

2 answers

Harshit Pandit 5 years, 3 months ago

Reserve capital means Part of subscribed uncalled capital.

Yogita Ingle 5 years, 3 months ago

A capital reserve is the type of reserve that is created from capital profits. The purpose for which a capital reserve is created is for preparing the company for sudden events like inflation, business expansion, funds for a new project.

A capital reserve is created from capital profit earned through sales of capital assets such as the sale of fixed assets, profit on the sale of shares.

The special property of capital reserve is that these are permanently invested and cannot be used for any other purpose apart from which it is created.

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Palak Kumari 3 months, 3 weeks ago

CBSE > Class 12 > Accountancy

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