Securities Premium Reserve is shown under the sub-head............... of the company’s Balance Sheet.

None of these

The correct answer is option 4- None of these.

Securities Premium Reserve is shown under the sub head reserves and surplus with its own name Securities Premium Reserve in the company’s Balance Sheet in the head shareholders fund.

Reserves and Surplus are required to be classified as:
i) Capital Reserve
ii) Capital Redemption Reserve
iii) Securities Premium Reserve
iv) Debenture Redemption Reserve
v) Revaluation Reserve
vi) Share Options Outstanding Account
vii) Other Reserves (Specifying nature and purpose)
viii) Surplus: Balance in statement of profit and loss; disclosing allocations and Appropriation such as dividend, bonus shares, transfer to/from reserve, etc.

THE FORMAT OF BALANCE SHEET OF EQUITY AND LIABILITIES SIDE OF A COMPANY IS AS FOLLOWS-

1) Shareholder’s Funds

• (a) Share Capital
• (b) Reserves and Surplus
• (c) Money received against share warrants

2) Share Application money pending allotment

3) Non-current Liabilities

• (a) Long term borrowings
• (b) Deferred tax liabilities (net)
• (c) Other long term liabilities
• (d) Long term provisions

4) Current Liabilities

• (a) Short-term borrowings
• (b) Trade payables
• (c) Other current liabilities
• (d) Short-term provisions