If vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, then the balance of Rs. 3,000 will be

The correct answer is: B. credited to Capital Reserve A/c

When vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, the balance of Rs. 3,000 is called capital reserve. Capital reserve is a reserve that arises when a company issues shares at a premium. It is a non-distributable reserve and can be used to write off preliminary expenses, issue bonus shares, or for any other purpose that is not prohibited by law.

Here is a detailed explanation of each option:

• Option A: Securities Premium A/c
  Securities premium is a reserve that arises when a company issues shares at a premium. It is a non-distributable reserve and can be used to write off preliminary expenses, issue bonus shares, or for any other purpose that is not prohibited by law. However, in this case, the shares are issued at a premium of Rs. 3,000, which is not the case in the question. Therefore, this option is not correct.

• Option B: Capital Reserve A/c
  Capital reserve is a reserve that arises when a company issues shares at a premium. It is a non-distributable reserve and can be used to write off preliminary expenses, issue bonus shares, or for any other purpose that is not prohibited by law. In this case, the shares are issued at a premium of Rs. 3,000, which is the balance of Rs. 12,000 – Rs. 9,000.

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