Question

Which of the following is not a component of reserve and surplus
a. statement of profit and loss debit balance
b. capital reserve
c. reserve capital
d. securities premium reserve

Answer 1

Answer:

statemen5 of profit n loss account

hope it is helpful

Answer 2

Answer:

Which of the following is not a component of reserve and surplus

a. statement of profit and loss debit balance

b. capital reserve

c. reserve capital

d. securities premium reserve

The correct option is Option (a) statement of profit and loss debit balance.

Explanation:

Reserve and surplus in the balance always account for the reserve and the provision made by the company due to certain gains in the market or to offset any future loss or obligation.

Like Securities premium reserve is made due to the premium received on issuing of shares or debentures.

While the statement of profit and loss is shown under the heading of shareholders fund.

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