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What is reserve capital

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What is reserve capital

Posted by Himanshu Chaudhary 4 years, 1 month ago

CBSE > Class 12 > Accountancy

2 answers

Khushi Dwivedi 4 years, 1 month ago

A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit

Himanshu Chaudhary 4 years, 1 month ago

Reserve Capital is defined as a part of subscribed uncalled capital, which will not be called up until and unless the company goes into liquidation. In other words, it is the portion of share capital that is reserved by the company and which will be utilized only on the happening of the said event.

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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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