Accounting for Share Capital · Class 12 · CBSE · Commerce Accountancy
Which of the following items is shown under the head 'Reserves and Surplus' in the Balance Sheet of a company?
Practice question from Accounting for Share Capital (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-E253D5
Which of the following items is shown under the head 'Reserves and Surplus' in the Balance Sheet of a company?
- A.Calls-in-Advance
- B.Securities Premium ReserveCorrect answer
- C.Forfeited Shares Account balance (after reissue)
- D.Capital Reserve from profit on reissue
Solution
Securities Premium Reserve is a statutory reserve shown under the sub-head 'Reserves and Surplus' under 'Shareholder's Funds' in the Balance Sheet as per Schedule III of the Companies Act, 2013.
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