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Question
Give any two differences between Reserve Capital and Capital Reserve.
Distinguish Between
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Solution
| Basis | Reserve Capital | Capital Reserve |
| 1. Creation | It is created out of uncalled capital. | It is created out of capital profits. |
| 2. Disclosure | It is not disclosed in the company's balance sheet. | It is disclosed in the company's balance sheet under Equity and Liabilities, Head-shareholders Funds, subhead - Reserves and Surplus. |
| 3. Time when it can be used. | It can be used only at the time of winding up of the company. | It can be used during the lifetime of the company. |
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