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
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.
