Capital reserves1 this is raised with selling shares at a, Ask an Expert

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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.

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Biology, Academics

Category:- Biology
Reference No.:- M9519925

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