Read the following information and answer the question.

Calculate shareholder's funds.

₹40,00,000

The correct answer is option 2- ₹40,00,000.

Shareholder's funds = Share capital + reserves and surplus
                                = 30,00,000 + 10,00,000 
                                = ₹40,00,000

*Securities reserve is not included in reserves and surplus because it is already included in reserves.