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Question

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


A

Reserves and surplus

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B

Preference shares

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C

Debentures

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D

Equity shares

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Solution

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.


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