Register now or log in to join your professional community.
Reserve capital = Authorized capital - issued capital
Capital reserve is that part of profit that is generated from capital or long term activities and they are reseved for specific purpose.
Reserve Cap: is the Capital reserved by the Comapny in other words not issued to Public, (Authorised Capital-Capital Issued to Public) Capital Reseve:Capital Reseve is the Profit part of Capital which the Company earned from Capital Part or from Long term Contracts. Capital Reserved may be used by Company only for some Specific purpose ( not like revenue reserver from where the Company may distribute the Profit) so Reserve Capital and Capital Reserve is totally different thing it cannot be said that what the difference between them. One is he Part oF Capital and the second is the part of Profit. Capital reserve is a reserve created to deal with general, unspecified contingencies such as inflation. It is a fund set aside for the specific purpose and can not be distributed for other uses. Normally it is legally not distributable as dividends to shareholders Reserve Capital is the part of the Authorised capital which is not yet called up
