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Question

_______ is the major head under equity and liabilities part of company balance sheet.

A
Inventories
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B
Shareholders fund
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C
Non-current investment
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D
Short-term loans and advances
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Solution

The correct option is B Shareholders fund

Shareholders’ fund is an account on a company’s balance sheet that consists of share capital plus retained earnings. It also represents the residual value of assets minus liabilities. Shareholders fund basically accumulated funds of shareholders that’s why it is the major head under equity and liabilities part of company balance sheet.

Accounting equation: Shareholders’ fund = Assets-Liabilities.


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