The Total solution for NCERT class 6-12
Basis of Difference
Revenue Reserve
Capital Reserve
Source
It is created out of revenue profit, i.e., revenue earned from normal activities of business operations.
It is created out of capital profit, i.e., gain from other than normal activities of business operations, such as sale of fixed assets, etc.
Dividend
It can be used for dividend.
It cannot be used for dividend.
Purpose
It is created for strengthening the financial position of the business.
It is created for the purpose laid down in the Companies Act.