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Example of capital reserves?

share premium


What is share holders fund?

Equity Share Capital +Preference Share Capital + Reserves and Surpluses constitute the Share Holders fund


Does share capital change when bonus share issued?

When bonus shares are issued share capital also change as amount from retained earnings or reserves is utilized to issue bonus shares and it increase the share capital while decrease the reserves or retained earnings.


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.


Why might a company repay part of its share capital?

Its cash reserves exceed its requirements for the foreseeable future


How reserves are part of capital?

Reserves are maintained from profit of current year business and profit is part of capital that's why reserves are also part of capital as if it is not maintained separately it will be included in profit or capital.


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.


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...


Free reserves under S372A of the companies Act 1956 whether includes capital reserves?

No, Capital reserves cannot be part of free reserves under S372A of Companies Act 1956.


What are types of share capital?

Following are different types of share capital. 1 - Preference share capital 2 - Common share capital


Transfer for the purpose of capital gain?

where a company wishes to enter into a merger or an acquisition, with another company with the intention of increasing its share capital that is mainly the meaning for transfer for the purpose of capital gain. the company acquires the capital of the company it acquires as well. You have certain exceptions to this core definition though, for example in the case of a demerger, when a demerged company transfers its capital asset that shall not be called a transfer for the purpose of capital gain.


Do you use the authorised share capital or issued share capital when getting the dividends declared?

issued share capital