The amount of Security Premium Reserve shown under the sub-head 'Reserves and Surplus' will be:

Given Data:

• Shares issued: 30,000
• Face Value: ₹100
• Premium: 10% i.e., ₹10 per share
• Issue Price: ₹110 per share

Payment Schedule:

Application = ₹40 (includes ₹10 premium)

Allotment = ₹45

Call = ₹25 (balance amount)

Allotment Details:

Applications received = 50,000 shares

Rejected = 10,000 shares

Valid applications = 40,000 shares

Shares allotted = 30,000 shares

Allotment ratio = 30,000 : 40,000 = 3 : 4

Shareholder Details:

Applied for = 400 shares

Allotted = 400 × $\frac{3}{4}$ = 300 shares

These 300 shares were forfeited and reissued at ₹80 per share

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Securities Premium Calculation:

Premium collected on 30,000 shares at the time of application = 30,000 × ₹10 = ₹3,00,000

When 300 shares were forfeited, the premium of ₹10 per share on these shares had already been collected at application stage (300 × ₹10 = ₹3,000).

On reissue at ₹80 per share (which is at a discount of ₹20 per share from face value), no premium is charged. The discount on reissue (₹20 per share × 300 shares = ₹6,000) is adjusted from the Forfeited Shares Account, not from Securities Premium Account.

As per the Companies Act, Securities Premium can only be utilized for specific purposes and cannot be used to write off discount on reissue of forfeited shares.

Therefore, Securities Premium Reserve remains = ₹3,00,000