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Which of the following items are included under the head "Reserves and Surplus" in a company balance sheet?(A) Securities Premium Reserve(B) Revaluation Reserve(C) Share Options Outstanding Account(D) Reserve CapitalChoose the correct answer from the options given below:

  1. A
    (A), (B) and (C) only
  2. B
    (A), (C) and (D) only
  3. C
    (A), (B) and (D) only
  4. D
    (B), (C) and (D) only

Solution & Step-by-step Explanation

Under Schedule III of the Companies Act, 2013, the subhead "Reserves and Surplus" includes items like Securities Premium Reserve, Revaluation Reserve, Capital Reserve, and Share Options Outstanding Account.On the other hand, Reserve Capital is not part of Reserves and Surplus; it is a portion of uncalled capital that will only be called up during winding up. Hence, (A), (B), and (C) are correct.

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Try it yourself before checking the explanation above.

Which of the following items are included under the head "Reserves and Surplus" in a company balance sheet?(A) Securities Premium Reserve(B) Revaluation Reserve(C) Share Options Outstanding Account(D) Reserve CapitalChoose the correct answer from the options given below:
A
(A), (B) and (C) only
B
(A), (C) and (D) only
C
(A), (B) and (D) only
D
(B), (C) and (D) only

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