Which of the following does not form part of shareholders fund?
Question 1 Report
Which of the following does not form part of shareholders fund?
Answer Details
Debenture does not form part of shareholders' fund.
Shareholders' fund is the total amount of money that has been contributed by the shareholders of a company through the issue of ordinary shares and any additional paid-in capital through shares premium. It also includes the accumulated profits of the company that have not been distributed as dividends to the shareholders.
Debenture, on the other hand, is a long-term debt instrument issued by a company to raise funds. Debenture holders are creditors of the company, and their investments do not give them ownership or control of the company. Therefore, debenture does not form part of shareholders' fund.
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