Capital reserves, Biology

Capital Reserves

1. This is raised with selling shares at a premium. As the difference among the market price less floatation costs and par value is credited to the capital reserve.

2. Along with revaluation of the company's assets. This leads to a fictitious entry that is of the nature of a capital reserve.

3. Via creation of a sinking fund.

Posted Date: 1/29/2013 3:12:31 AM | Location : United States

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