CSEET · Fundamentals of Accounting · Introduction to Company Accounts
Under Schedule III, which of the following is correctly shown under 'Reserves and Surplus' in the Balance Sheet of a company?
Securities premium is shown under Reserves and Surplus in the Schedule III Balance Sheet because it is a capital reserve arising from shares issued above par. Calls in arrears reduce share capital, share warrant money has its own heading, and unpaid dividend is a current liability.
- ASecurities premiumCorrect
- BCalls in arrears
- CMoney received against share warrants
- DUnpaid dividend
Explanation
Securities premium is a reserve and is shown under Reserves and Surplus. Calls in arrears is deducted from subscribed capital. Money received against share warrants is a separate heading within Shareholders' funds. Unpaid dividend is an other current liability.
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