New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Divyam Textiles ltd has received money against share

    warrants which will be converted into shares after 2 years at rate of 1:2. The money so received, will be shown in the Balance sheet under ________
    A Shareholder’s fund Correct Answer Incorrect Answer
    B Non-current liabilities Correct Answer Incorrect Answer
    C Current liabilities Correct Answer Incorrect Answer
    D Non-current assets Correct Answer Incorrect Answer
    E Current assets Correct Answer Incorrect Answer

    Solution

    Money Received against share warrants is the amount received by the company which are converted into shares at a specified date on a specified rate. The instrument issued against the amount so received as share warrants. As per Schedule III of the Companied Act, Money received against share warrants’ is to be disclosed as a separate line item under ‘shareholder’s fund’.

    Practice Next