Accountancy, asked by shobhachauhan716, 4 days ago

security premium reserve appears in a company balance sheet under the sub head :

Answers

Answered by ujuuo

Answer:Reserve and surplus.

Explanation:premium is generally called with the amount due on allotment, sometimes with the application money and rarely with the call money. The premium amount is credited to a separate account called 'Securities Premium Account' and Is shown on the liabilities side of the company's balance sheet under the heading 'Reserve and Surplus'.

Hope that was helpful ✨

Answered by βαbγGυrl

Answer:

There is a separate securities premium account. Securities Premium appears on the liabilities side of Balance Sheet under the head Reserve and Surplus. Accounting Treatment of Securities Premium Companies collect the amount of premium in the lump sum at the time of issuing a share.

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