Question

Which of the following is not a part of owners’ funds? Find the Answer at BYJU'S

• A. Reserves and surplus
• B. Preference shares
• C. Debentures
• D. Equity shares

Answer 1

The correct option is C

Debentures

Answer (c) Debentures

Explanation: Debentures are a debt instrument utilised by organisations and governments to give credit. Debentures are otherwise called a bond that fills in as an IOU among purchasers and issuers. Organisations use debentures when they need to borrow cash at a fixed rate of interest for their development. Hence, debentures are not a part of the owner’s capital.