Question:

What is Capital Reserve?

Show Hint

Capital profits create Capital Reserve; it is not meant for dividend distribution.
Updated On: Feb 16, 2026
Hide Solution
collegedunia
Verified By Collegedunia

Solution and Explanation

Capital Reserve is that part of profit which arises from capital transactions such as profit on sale of fixed assets, issue of shares at premium, or revaluation surplus. It is not available for distribution as dividend.
Was this answer helpful?
0
0