Question : Premium on the issue of shares should be shown :
Option 1: On the Asset side of the Balance sheet
Option 2: On the Equities and Liabilities side of the Balance Sheet
Option 3: In the Statement of Profit and Loss
Option 4: None of the above
Answer (1)
16th Jan, 2024
Correct Answer: On the Equities and Liabilities side of the Balance Sheet
Solution : On the Liability side of the Balance Sheet, under the heading Shareholders' Funds, is where the premium received on the issuance of shares (also known as Securities Premium) is displayed.
Hence the correct answer is option 2.
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