CA Inter P1 · Chapter 9 · Question 3 of 10
Under Division I of Schedule III, the balance in the Securities Premium account is presented under:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Reserves and Surplus within Shareholders' Funds
Explanation
Securities premium is a reserve and is shown as a separate item under 'Reserves and Surplus' within Shareholders' Funds. It does not form part of share capital, which shows only the nominal value of shares, and it is not a liability.
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