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Why capital reserve increase?

Updated: 9/20/2023
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Q: Why capital reserve increase?
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Define capital reserve?

Capital reserve is the amount created to increase in market value of assets at the time of revaluation of assets.


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.


How you can increase general reserve when your profit has also decreased?

how can we increase the general 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.


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


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