Read the following information and answer the question.
| PARTICULARS | AMOUNT (₹) |
| Share capital | 30,00,000 |
| Securities premium reserve | 2,00,000 |
| Reserves and surplus | 10,00,000 |
| Loan from IFCI @10% | 20,00,000 |
| 5% Bonds | 25,00,000 |
| Long term provision | 3,00,000 |
| Short term provision | 1,00,000 |
| Short term borrowings | 4,00,000 |
| Trade payables | 5,00,000 |
Calculate shareholder's funds.
Answer & explanation
Correct answer: option 2
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.