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Distinguish between ‘revenue reserve’ an...

Distinguish between ‘revenue reserve’ and ‘capital reserve’.

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Capital Reserve
1. A capital reserve is formed to finance long run comes for a business
2.To meet the precise purpose of meeting the accounting principles
3.Capital reserve is created by the sale of fixed assets
Revenue Reserve
1.Revenue reserve is made to fulfill unforeseen events during a concern
2.used as reinvestment for company
3.Revenue reserve is created from retained earnings
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