security premium should be disclosed under?
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Answer:
reserves and surplus
Explanation:
Security Premium Reserve is the additional amount charged on the face value of any share when the shares are issued, redeemed, and forfeited. The Companies Act 2013 states that when security premium has to be recorded in the balance sheet, it done in the Reserve & Surplus mentioned under the Equity & Liabilities of a company’s balance sheet. This item is added under the head Reserve & Surplus. Moreover, reserve and surplus record all accumulated profits as well as losses.
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