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Question : Securities Premium Reserve A/c has a ------------ and is a-----------, to be shown on the equity and liabilities side under the head -----------.

Option 1: Debit balance, capital profit, reserve and surplus

Option 2: Credited, revenue profit, reserve and surplus 

Option 3: Credited, capital profits, reserve and surplus 

Option 4: Credited, capital profit, shareholders' fund 


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Credited, capital profits, reserve and surplus


Solution : Answer = Credited, capital profits, reserve and surplus

Securities Premium Reserve A/c typically has a credited balance and is considered a capital profit. It is shown on the equity and liabilities side of the balance sheet under the head "reserve and surplus." This reserve represents the excess amount received over the face value of shares issued as a premium.
Hence, the correct option is 3.

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