Reserve and surplus are shown under the ..............in the balance sheet of a company.
Answer & explanation
Correct answer: option 2
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