Reserves and surplus
Current liabilities and provisions
Share capital
All of these
Answer is Right!
Answer is Wrong!
The correct answer is: A. Reserves and surplus.
Securities premium reserve account is a type of reserve account that is created when a company issues shares at a premium above their par value. The premium is recorded in the securities premium reserve account and is not available for dividends. The account is shown on the liabilities side of the balance sheet under the heading “Reserves and surplus.”
The other options are incorrect because:
- Current liabilities and provisions are liabilities that are due within one year.
- Share capital is the amount of money that has been raised by a company by issuing shares.
I hope this helps! Let me know if you have any other questions.