CA Foundation · Accounting · Company Accounts
Under Schedule III of the Companies Act, 2013 (Division I), in which main heading of the Balance Sheet would 'Securities Premium' be shown?
Securities Premium is shown under Reserves and Surplus within Shareholders' Funds in the Balance Sheet. It is an excess received over face value, not share capital itself, and it is not owed to outsiders, so it is not presented as a liability.
- AReserves and Surplus under Shareholders' FundsCorrect
- BShare Capital under Shareholders' Funds
- CNon-Current Liabilities
- DOther Current Liabilities
Explanation
Schedule III requires Securities Premium to be shown under 'Reserves and Surplus', which is part of Shareholders' Funds. It is not part of Share Capital because it is the amount received over the face value of shares, and it is not a liability to outsiders.
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