What is meant by ‘Capital Reserve’? Post category:Accountancy Reading time:1 mins read SOLUTION Capital reserve is that reserve which is created out of capital profits. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostIs reserve capital a, part of ‘Unsubscribed Capital’ or ‘Uncalled Capital’. (C.B.S.E. 20 I8) Next PostWhat is meant by ‘Private Placement of Shares’? (C.B.S.E. 2019) You Might Also Like Kartik Mutuals, a mutual fund company, provides you the following information: October 6, 2022 ‘Shri Ltd.’ was carrying on a business of packaging in Delhi and earned good profits in the past years. The company wanted to expand its business and required additional funds. To meet its requirements the company issued equity shares of Rs. 30,00,000. It purchased a computerised machine of Rs. 20,00.000. It also purchased raw material amounting to Rs. 2,00,000. During the current year, the Net Profit of the company was Rs. 15,00,000. Find out ‘Cash Flow from Operating Activities’ from the above transactions. October 6, 2022 A, B and C who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2: 3: 5. Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs. 1,20,000 at the time of change in profit-sharing ratio, when: (i) no other information is given; (ii) there is no claim against it. July 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
‘Shri Ltd.’ was carrying on a business of packaging in Delhi and earned good profits in the past years. The company wanted to expand its business and required additional funds. To meet its requirements the company issued equity shares of Rs. 30,00,000. It purchased a computerised machine of Rs. 20,00.000. It also purchased raw material amounting to Rs. 2,00,000. During the current year, the Net Profit of the company was Rs. 15,00,000. Find out ‘Cash Flow from Operating Activities’ from the above transactions. October 6, 2022
A, B and C who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2: 3: 5. Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs. 1,20,000 at the time of change in profit-sharing ratio, when: (i) no other information is given; (ii) there is no claim against it. July 27, 2022