Read the following information and answer the question.
| PARTICULARS | AMOUNT (₹) |
| Share capital | 30,00,000 |
| Securities premium reserve | 2,00,000 |
| Reserves and surplus | 10,00,000 |
| Loan from IFCI @10% | 20,00,000 |
| 5% Bonds | 25,00,000 |
| Long term provision | 3,00,000 |
| Short term provision | 1,00,000 |
| Short term borrowings | 4,00,000 |
| Trade payables | 5,00,000 |
What will be the total amount of reserves and surplus if the following information is available?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹10,00,000.
Reserves and surplus = ₹10,00,000
Securities premium reserve is ignored because it is already included in reserves.