Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Read the following information carefully and answer the question.

The Balance Sheet of ABC Ltd as on 31 March 2022:

Liabilities Amount (₹)
Asset Amount (₹)
Share Capital Equity(₹10) 4,00,000 Fixed Assets 9,50,000
12% preference shares 1,00,000 Current Assets 2,34,000
General Reserve 1,84,000    
10% Debentures 4,00,000    
Current Liabilities 1,00,000    
  11,84,000   11,84,000

Additional information :

1. Market price of share = 34

2. Net profit after tax = 1,50,000

3. Tax = 50,000

Shareholder's fund will be :

Options:

₹6,84,000

₹5,00,000

₹4,00,000

₹5,84,000

Correct Answer:

₹6,84,000

Explanation:

The correct answer is option 1- ₹6,84,000.

Shareholders’ Fund = Equity Share Capital + Preference Share Capital + General Reserve
                            =  4,00,000 + 1,00,000 + 1,84,000
                            = 6,84,000