Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

Shareholders fund is equal to:

Options:

Equity share capital + Preference share capital

Non-current assets + Working capital – Non-current liabilities

Equity share capital + Preference share capital + Reserves and Surplus + Share application money pending allotment + Money received against share warrants 

Both options 2 and 3

Correct Answer:

Both options 2 and 3

Explanation:

The correct answer is option 4- Both options 2 and 3.

Shareholders’ Funds (Equity) = Share capital + Reserves and Surplus + Money received against share warrants + Share application money pending allotment
* Share Capital = Equity share capital + Preference share capital

or

Shareholders’ Funds (Equity) = Non-current assets + Working capital – Non-current liabilities