Identify the major head under which 'Share Options Outstanding Account' are disclosed.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Shareholder’s Fund
In the Balance Sheet, the major head is Shareholders’ Funds; Reserves and Surplus is only a sub-head under it. The book says the share options outstanding account is shown as a separate item under Reserve and Surplus, as a part of shareholders fund.
Option (2) Reserve and Surplus — Incorrect. It is a sub-head, not the major head.
Option (3) Non Current Liabilities — Incorrect. The account is owners’ equity, not a debt.
Option (4) Current Liabilities — Incorrect. Nothing is payable to outsiders within a year.
NCERT (2026-27 edition):
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