Capital reserve V/S Reserve Capital

Difference between Capital Reserve and Reserve Capital

2. CAPITAL RESERVE

RESERVE CAPITAL

Created out of

Need of creation

Resolution

Utilization

Disclosure

Part of capital profit reserved
by the company for a
particular purpose

Capital profits
Mandatory

No Resolution should be
passed

To write of fictitious assets or
capital losses etc.

Liability side of the balance
sheet under the head Reserve
and Surplus.

The part of subscribed uncalled

capital, which will not be called
up until and unless the company
goes into liquidation

Subscribed capital

Voluntary

Special Resolution should be
passed at AGM

Use to pay liabilities at the time
of winding up

Not disclosed