Reserves and surpluses are shown on which side and under which head in the balance sheet?
Liability side under capital head.
The correct answer is option 2. Reserves and surpluses are shown on the asset side under the investment head in the balance sheet. These are accumulated profits that are not distributed as dividends, and they are considered part of the owners' equity or retained earnings, typically placed under the asset side of the balance sheet.
Important Questions from Balance sheet statement
___________ is a record of assets and liabilities of any firm.
A businessman can find out what his business owns and what it owes from _______.
Which of the following options is an INCORRECT pair considering a firm's balance sheet?
A trial balance shows
(i) Credit balances
(ii) Debit balances
Which of the following pairs is NOT correctly matched in the context of account balances shown in the Trial Balance?
