Question

Identify the item which is not a part of Shareholders’ Funds:

Options

• Share Application Money Pending Allotment

• Share Capital

• Reserves and Surplus

• Money Received against Share Warrants.

Answer 1

Share Application Money Pending Allotment

Explanation:

Under Schedule III of the Companies Act, Share Application Money Pending Allotment is presented as a separate major heading on the Balance Sheet. It does not sit inside shareholders’ funds because the shares have not been officially issued yet. In contrast, Share Capital, Reserves & Surplus, and Money Received Against Share Warrants are all direct sub-heads inside Shareholders’ Funds.