What is the difference between Revenue reserve and Capital reserve?

1.	What is the difference between Revenue reserve and Capital reserve?
Answer» <th>BASIS FOR COMPARISON</th> <th>REVENUE RESERVE</th> <th>CAPITAL RESERVE</th> \t\t\tMeaningRevenue Reserve refers to the sum of money retained in business, so as to meet out future contingencies.Capital Reserve alludes to a fund, that is created to finance long term project or write off capital expenses.SourceRevenue profit of the firm are the source of revenue reserves.Capital profit of the firm are the source of capital reserve.AimTo meet unforeseen contingencies and improve entity\'s financial position.To adhere to the statutory requirements or accounting principles.UtilizationBased on the type of reserve it can be utilized for any or particular purpose only.Capital reserve can be utilized for the purpose for which it is created.DividendIt is freely available for distribution as dividend.It is not available for distribution as dividend.\t

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