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Capital reserve is a free reserve or not?

Likhitha Sivani

Likhitha Sivani

CA Final

★ 14K+

22-May-22 17:16

309

Answers (2)

Best Answer

Free reserves are the reserves which are not made for a specific purpose. Capital reserve is created to compensate the future capital losses and to meet future expenses So capital reserve is not a free reserve

Avasarala Vivek Aditya

Avasarala Vivek Aditya

CA Inter

★ 6K+

22-May-22 17:21

Avasarala Vivek Aditya

Free reserves are the reserves which are not made for a specific purpose. Capital reserve is created to compensate the future capital losses and to meet future expenses So capital reserve is not a free reserve

Ok thank you

Thread Starter

Likhitha Sivani

Likhitha Sivani

CA Final

★ 14K+

22-May-22 17:22

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