Which Reserve is not Capital Reserve out of the following reserves ?
Premium on issue of shares/debentures, profit prior to incorporation, and capital profit on sale of fixed assets over original cost are Capital Reserves. Under-valuation of…
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Which Reserve is not Capital Reserve out of the following reserves ?
Answer and explanation
Correct answer C
Premium on issue of shares/debentures, profit prior to incorporation, and capital profit on sale of fixed assets over original cost are Capital Reserves. Under-valuation of closing stock creates a Secret Reserve, not a Capital Reserve.
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RPSC School Lecturer (School Education)