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in Class 12 by kratos

What is ‘Capital Reserve’?

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+2 votes
by kratos
 
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Capital Reserve is a reserve that is created out of capital profits i.e gains or profits arising from other than the normal activities of business operations i.e. activities other than sale or purchase of goods and services. This reserve is utilised to meet future capital losses, if any, and to issue bonus shares. It cannot be distributed as dividend among the shareholders.

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