Question

Money Received Against Share Warrants is shown in the Balance Sheet under ______.

Options

• Shareholders’ Funds.

• Other Long-term Liabilities.

• Long-term Provisions.

• Other Current Liabilities.

Answer 1

Money Received Against Share Warrants is shown in the Balance Sheet under Shareholders’ Funds.

Explanation:

Under Schedule III of the Companies Act, money received against share warrants is a main line item under Shareholders’ Funds. A share warrant gives the holder the right to get equity shares at a future date. Since this money will convert into equity shares and does not need to be paid back, it is treated as part of the owners’ equity rather than a liability.