Reserve and surplus are shown under the ..............in the balance sheet of a company.

Shareholders' Funds

The correct answer is option 2- Shareholders' Funds.

Reserve and surplus are shown under the Shareholders' Funds in the balance sheet of a company.

Reserves & Surplus is a category on a company's balance sheet that includes funds that have been retained from profits or capital contributions. Money is regularly set aside and invested to accumulate a sum of money to meet future financial obligations, such as paying off debts or replacing equipment.

Shareholder’s Funds

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