Premium received on the issue of shares is shown in:

The correct answer is: D. Liabilities side of the Balance Sheet.

Premium received on the issue of shares is a liability because it is a debt that the company owes to the shareholders. The company must repay the premium to the shareholders if they decide to sell their shares.

The debit side of the Profit and Loss Account is used to record expenses, while the credit side is used to record income. The assets side of the Balance Sheet is used to record the company’s assets, while the liabilities side is used to record the company’s liabilities.

Here is a more detailed explanation of each option:

• Option A: Debit side of Profit and Loss Account. This is incorrect because premium received on the issue of shares is a liability, not an expense.
• Option B: Credit side of Profit and Loss Account. This is incorrect because premium received on the issue of shares is a liability, not income.
• Option C: Assets side of the Balance Sheet. This is incorrect because premium received on the issue of shares is a liability, not an asset.
• Option D: Liabilities side of the Balance Sheet. This is the correct answer because premium received on the issue of shares is a liability.