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In accounting, especially for government operations, a "capital reserve fund" holds money that the officers or taxpayers have set aside for a specific purpose. The fund can be invested and grown, but can only be spent on the allowed purposes, unless new legislation is passed. The general fund can be spent for any legal purpose, or portions can be "earmarked" for a particular purpose, or put into capital reserve for spending on that purpose later.
Wiki User
∙ 16y ago
Wiki User
∙ 14y agoCapital reserve is a type of account on a company's balance sheet that is reserved for long-term capital investment projects or any other large and anticipated expense(s) that will be made in the future. This type of reserve fund is set aside to ensure that the company or municipality has adequate funding to at least partially finance the project.
Wiki User
∙ 9y agoA type of account on a municipality's or company's balance sheet that is reserved for long-term capital investment projects or any other large and anticipated expense that will be incurred in the future. This type of reserve fund is set aside to ensure that the company or municipality has adequate funding to at least partially finance the project.
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Is revaluation reserve a capital reserve?
Yes...revaluation reserve is a part of capital reserve.
What is the difference between capital reserve and reserve capital?
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 shareholdersReserve Capital is the part of the Authorised capital which is not yet called up
Can revaluation reserve be use for bonus issue?
Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...
Is share premium a capital reserve?
yes
What is capital redemption reserves?
Capital Redemption Revere is an reserve created when a company buys it owns shares which reduces its share capital. This reserve is not distributable to shareholders and can be used to pay bonus shared issued.
Is capital reserve a free reserve?
capital reserve is not a free reserve
Is revaluation reserve a capital reserve?
Yes...revaluation reserve is a part of capital reserve.
What is the difference between capital reserve and reserve capital?
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 shareholdersReserve Capital is the part of the Authorised capital which is not yet called up
Difference between Debenture Redemption Reserve and Capital redumption Reserve?
The Capital Redemption Reserve is a fund that secures a creditor. Debenture Redemption Reserve is for the purpose of security payments only.
Define capital reserve?
Capital reserve is the amount created to increase in market value of assets at the time of revaluation of assets.
Why is capital redemption reserve created?
No
Can revaluation reserve be use for bonus issue?
Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...
What are free reserves under companies act 1956?
investment allowance reserve, capital reserve received in cash, security premium received in cash,capital redemption reserve,
What is the difference between retained earnings and revenue reserve?
Capital reserve is capital set aside for specific future purpose such as building a new facility in the near future. It would be like you saving to buy a new a car. Reserve capital is money set aside for unforeseen issues. It's like a saving account or emergency fund that has no specific earmark.
Is share premium a capital reserve?
yes
Can investment depreciation reserve be considered as free reserve to compute as tier you or tier ii capital?
Investment deportation reserve not considered as free reserve
Is Share premium as capital or revenue reserve?
Share Premium is a Capital Reserve. They cannot pay dividends because share premium is a non trading activity.
