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प्रश्न
Distinguish between ‘revenue reserve’ and ‘capital reserve’
अंतर स्पष्ट करें
उत्तर
| Basis of Difference | Revenue Reserve | Capital Reserve |
| Source | It is created out of revenue profit, i.e., revenue earned from normal activities of business operations. | It is created out of capital profit, i.e., gain from other than normal activities of business operations, such as sale of fixed assets, etc. |
| Dividend | It can be used for dividend. | It cannot be used for dividend. |
| Purpose | It is created for strengthening the financial position of the business. | It is created for the purpose laid down in the Companies Act. |
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Reserves
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