What is difference between goodwill account and capital reserve account?

Goodwill is an Intangible Assets of an enterprise. Its the "extra earning capacity" in future years due to past efforts.

While Capital reserve arises because of capital profits i.e. profits which are not earned because of normal routine business transactions. for e.g. profit on reissue of forfeited shares, profit on business acquisition, profit prior to incorporation, etc.

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CA. Ravi Chugh

(FCA, Visiting faculty ICAI & Top Institutes of CA-Studies for teaching IPCC Accountancy)