Question : In a Company Balance Sheet, the credit (profit) balance of the Statement of Profit and Loss is shown under:
Option 1: Reserve and Surplus
Option 2: Current Liabilities
Option 3: Non-current Assets
Option 4: Non-current Liabilities
Correct Answer: Reserve and Surplus
Solution : Answer = Reserve and surplus
In a company's balance sheet, the credit balance of the statement of profit and loss, representing profit, is typically shown under the category of "Reserve and Surplus". This section accounts for retained earnings and other accumulated profits that have not been distributed as dividends. Hence, the correct option is 1.
Question : Capital employed in a firm is calculated from the liabilities approach as follows
Question : The premium on redemption of debenture is shown under which head of the Balance Sheet?
Question : Capital employed in a firm is calculated from assets side approach as follows:
Question : Securities Premium Reserve A/c has a ------------ and is a-----------, to be shown on the equity and liabilities side under the head -----------.
Question : Due to be Settled within 12 Months from the Date of the Balance Sheet: A liability is classified or shown as ------.
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