Identify the components of equity:
A. Money received against share warrants
B. Working Capital
C. Share Capital
D. Reserves & surplus
E. Cash revenue from operations
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A, C & D only
Equity (shareholders’ funds) has three sub-heads in the balance sheet: share capital, reserves and surplus, and money received against share warrants. These are (C), (D) and (A).
(B) Working capital is not an item of the balance sheet at all; it is the excess of current assets over current liabilities.
(E) Cash revenue from operations is income of the year, shown in the statement of profit and loss; only the profit left after expenses reaches equity, through the surplus.
NCERT (2026-27 edition):
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