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
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.
Question : In case of loss, The balance of the Profit and Loss Suspense Account is shown on the liabilities side of the Balance Sheet
Question : Complete the Table - Name of Account – Account group in financial Account Hint - Sundry Debtors – Balance sheet, Asset side
Indirect income ____ Current liabilities_____ Stock in hand _____
Question : In a Company Balance Sheet, the credit (profit) balance of the Statement of Profit and Loss is shown under:
Question : The balance of the Profit and Loss Suspense Account is shown on the assets side of the Balance Sheet.
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