Under which heading of the Balance Sheet is general reserve shown?
Options:
Miscellaneous Expenditure
Share Capital
Reserves & Surplus
None of these
Correct Answer:
Reserves & Surplus
Explanation:
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 a statement of profit and loss; disclosing allocations and Appropriation such as dividend, bonus shares, transfer to/from reserve, etc.
