Securities Premium Reserve is shown under 'Reserve and Surplus'.

The Securities Premium Reserve is a type of reserve that is created when a company issues shares at a premium, which is the amount paid by investors over the face value of the shares. This reserve is created to account for the excess amount received on the issuance of shares at a premium.

Explanation:

Definition of Securities Premium Reserve:
The Securities Premium Reserve is a reserve created by a company when it issues shares at a premium. This reserve is created to account for the excess amount received on the issuance of shares at a premium. It is a part of the company's 'Reserve and Surplus' section in the balance sheet.

Types of Reserves:
Reserves are classified into various categories based on their purpose and nature. These reserves include:

1. Capital Reserve: Created out of capital profits or gains and is not available for distribution as dividends to shareholders.
2. Revenue Reserve: Created out of revenue profits and can be used for the distribution of dividends or other purposes.
3. General Reserve: Created out of retained earnings and is not designated for any specific purpose.
4. Specific Reserve: Created for a specific purpose such as the replacement of assets or meeting future contingencies.
5. Securities Premium Reserve: Created when shares are issued at a premium.

Placement of Securities Premium Reserve:
The Securities Premium Reserve is shown under the 'Reserve and Surplus' section of the balance sheet. This section includes all the reserves created by the company, including the Securities Premium Reserve. The 'Reserve and Surplus' section represents the accumulated profits or reserves of the company that have not been distributed to shareholders as dividends.

Significance of Securities Premium Reserve:
The Securities Premium Reserve reflects the additional amount received by the company over the face value of the shares during the issuance of shares at a premium. It represents the capital raised by the company through the issuance of shares at a premium and can be utilized for various purposes such as funding expansion projects, retiring debt, or meeting future contingencies.

In conclusion, the Securities Premium Reserve is shown under the 'Reserve and Surplus' section of the balance sheet as it represents the excess amount received on the issuance of shares at a premium. This reserve is significant for the company as it represents additional capital raised and can be utilized for various purposes.

Option b is the right answer.