Considering the facts related to capital structure, which among them forms the part of owner's funds?

(A) Equity Share Capital

(B) Preferences Share Capital

(C) Debentures

(D) Reserves and Surplus

(E) Public deposits

Choose the correct answer from the options given below :

(A), (B) and (D) only

The correct answer is option (2)- (A), (B) and (D) only.

(C) Debentures & (E) Public deposits are borrowed fund.

The owner's funds refer to the capital invested by the owners of the company, consisting of equity-based sources of finance.

Equity Share Capital (A): This is the money raised from the shareholders who own the company. It is part of the owner's fund.

Preference Share Capital (B): This is also raised from shareholders, but they have preferential rights over equity shareholders in terms of dividends and repayment of capital. It is generally considered part of the owner's funds, but it has characteristics of both equity and debt.

Debentures (C): These are debt instruments, not part of owner's funds. They represent borrowed money that must be repaid with interest.

Reserves and Surplus (D): These are accumulated profits or other funds set aside by the company. They form part of the owner's equity.

Public Deposits (E): These are also considered borrowed funds, not owner's funds. Public Deposits refer to the funds collected by companies from the public, usually in the form of fixed-term deposits. These deposits are offered by companies as an alternative investment option for individuals or entities, typically for a fixed period and at a fixed rate of interest. Public deposits can be seen as a source of medium-term financing for the company.