Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Which of the following item is not a part of the 'Shareholders' Funds' head of a company's balance sheet?

Options:

Reserves and Surplus

Share Capital

Money Received against Share Warrants

Share Application Money Pending Allotment

Correct Answer:

Share Application Money Pending Allotment

Explanation:

I. 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 provisions