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Question
Securities premium appears in a company’s balance sheet under ______.
Options
Share Capital
Long-term Provision
Short-term Provision
Reserve & Surplus
MCQ
Fill in the Blanks
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Solution
Securities premium appears in a company’s balance sheet under reserve & surplus.
Explanation:
Securities Premium is the amount received by a company over and above the face value of shares issued. For example, if a ₹ 10 share is issued at ₹ 15, then ₹ 5 is the securities premium. This amount is not part of share capital, but is credited to a separate account called the Securities Premium Account.
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