| Points | General Reserve | Specific Reserve |
| 1. Meaning | Reserve created not for any specific and earmarked purpose is known as general reserve. | Reserve created for some specific and earmarked purpose is known as specific reserve. |
| 2. Purpose | General reserve is created to meet some future contingencies and for strengthening financial position of a business concern. | Specific reserve is created for some specific purpose. |
| 3. Utilized | General reserve is utilized to meet any unknown liability. | Specific reserves can be utilized only for the purpose for which they were created. |
| 4. Paying dividend | In case of need, general reserve can be utilized for paying dividend. | Usually, dividend cannot be paid out of the specific reserves. |
| 5. Created from | General reserve is created out of profit and loss appropriation account. | Specific reserve is created out of profit and loss account. |
