What shall be the amount of Shareholders fund, if Equity Share Capital is Rs. 16,00,000, 8% Preference Share Capital is Rs. 2,00,000, General Reserve Rs. 73,000, Profit and Loss account balance (Cr.) Rs. 41,000, Preliminary Expenses. Rs. 20,000 and Short-term liabilities Rs. 30,000:

Rs. 15,00,000
Rs. 18,94,000
Rs. 19,14,000
Rs. 19,34,000

The correct answer is B. Rs. 18,94,000.

Shareholders’ fund is the total amount of money that shareholders have invested in a company. It is calculated by adding up the company’s equity share capital, preference share capital, and reserves.

In this case, the company has an equity share capital of Rs. 16,00,000, a preference share capital of Rs. 2,00,000, a general reserve of Rs. 73,000, a profit and loss account balance of Rs. 41,000, preliminary expenses of Rs. 20,000, and short-term liabilities of Rs. 30,000.

Therefore, the shareholders’ fund is calculated as follows:

Shareholders’ fund = Equity share capital + Preference share capital + General reserve + Profit and loss account balance – Preliminary expenses – Short-term liabilities

= Rs. 16,00,000 + Rs. 2,00,000 + Rs. 73,000 + Rs. 41,000 – Rs. 20,000 – Rs. 30,000

= Rs. 18,94,000

The other options are incorrect because they do not take into account all of the components of shareholders’ fund.

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