[Solved] Securities Premium Reserve account should be shown in the Balance sheet under

Securities Premium Reserve account should be shown in the Balance sheet under

a) Paid-up capital

b) Subscribed capital

c) Reserves & surplus

d) Reserved capital

Answer: (c) Securities Premium Reserve account should be shown in the Balance sheet under reserves & surplus. The Companies Act 2013 states that when a security premium has to be recorded in the balance sheet, it did in the Reserve & Surplus mentioned under the Equity & Liabilities of a company’s balance sheet. This item is added under the head Reserve & Surplus.

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