Question

Which of the following is not shown under the heading share capital in a balance sheet​

Answer 1

The options for this question are:

A. Preference Share Capital

B. Calls in Arrears

C. Equity Share Capital

D. Capital Reserve Account

The correct answer is option D. Capital Reserve Account.

Explanation:

• Under the heading “Share Capital” all transactions concerning to share capital of both, equity and preference are there.

• Henceforth, equity share capital, preference share capital, and calls in arrears will show under the heading share capital.  

• Capital reserve account will be given under the heading “Reserves and Surplus” and is a reserve that is created owing to capital profits.