What is the correct order of preparing SHAREHOLDER'S FUNDS in the balance sheet of a company?
A) Reserves and surplus
B) Money received against share warrants
C) Share capital
Answer & explanation
Correct answer: option 3
The correct answer is option 3- CAB.
EQUITY AND LIABILITIES
1) Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants
2) Share Application money pending allotment
3) Non-current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions
4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provision