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Is capital reserve a free reserve?
capital reserve is not a free reserve
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
What is working capital in a Bank?
Total of Share capital, reserves and other funds and deposits is working capital of the bank but less revaluation reserve.
Is securities premium capital reserve or not?
i think it is a capital Reserve because it has limited use.it can be used only for 5 purposes i.e. in accordance with sec.78 and for buy back in accordance with sec.77A triyambak143@gmail.com
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.
Define redemption of debentures out of capital?
When debentures are redeemed out of capital, no transfer is made to general reserve or debenture redemption reserve account. In this method it is assumed that the company has sufficient funds to redeem the debentures. So the profits are not utilised to replace the debentures.It affects adversely to the Working Capital of the company.
How the accounting entry should be made when the creditor convert the loan to equity?
Debit Loan and credit Capital Reserve
Why is capital redemption reserve created?
No
What are free reserves under companies act 1956?
investment allowance reserve, capital reserve received in cash, security premium received in cash,capital redemption reserve,
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 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
