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Securities premium is shown under which head in the balance sheet.
- a)Current liabilities
- b)Miscellaneous expenditure
- c)Reserves and surplus
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Securities premium is shown under which head in the balance sheet.a)Cu...
Securities premium is shown under the head of "Reserves and Surplus" in the balance sheet. This head includes all the profits and reserves accumulated by the company over the years. The securities premium is a type of reserve that is created when a company issues securities at a premium.
The securities premium is the difference between the issue price and the face value of the securities. For example, if a company issues shares with a face value of Rs. 10 at a premium of Rs. 5, then the securities premium would be Rs. 5 per share. This premium amount is collected by the company and kept in a separate account called the securities premium account.
The securities premium account is a part of the reserves and surplus of the company and is shown under this head in the balance sheet. This account is created to absorb any future losses that the company may incur or to finance future capital expenditures.
In summary, securities premium is shown under the head of "Reserves and Surplus" in the balance sheet as it is a type of reserve created by the company when it issues securities at a premium.
The securities premium is the difference between the issue price and the face value of the securities. For example, if a company issues shares with a face value of Rs. 10 at a premium of Rs. 5, then the securities premium would be Rs. 5 per share. This premium amount is collected by the company and kept in a separate account called the securities premium account.
The securities premium account is a part of the reserves and surplus of the company and is shown under this head in the balance sheet. This account is created to absorb any future losses that the company may incur or to finance future capital expenditures.
In summary, securities premium is shown under the head of "Reserves and Surplus" in the balance sheet as it is a type of reserve created by the company when it issues securities at a premium.
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Securities premium is shown under which head in the balance sheet.a)Cu...
Opt is c bcuz premium heading comes under reserves and surplus and also it.is shown in liability side in company a/c b/s
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Securities premium is shown under which head in the balance sheet.a)Current liabilitiesb)Miscellaneous expenditurec)Reserves and surplusd)None of theseCorrect answer is option 'C'. Can you explain this answer?
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