DISTINGUISH BETWEEN RESERVE CAPITAL AND CAPITAL RESERVE

DISTINGUISH BETWEEN RESERVE CAPITAL AND CAPITAL RESERVE

RESERVE CAPIAL	CAPITAL RESERVE
Reserve capital is that part of uncalled capital which can’t be called except in the case of winding up.	Capital reserve is an accumulated profit which generated from capital profit or earning.
Creation of reserve capital is not mandatory	Creation of capital reserve is mandatory.
Reserve capital has not been shown in the balance sheet.	Capital reserve is shown in the liability side of the balance sheet
Reserve capital is not used write off the capital losses.	Capital reserve can be used to write-off capital losses or of the issue of bonus shares.