Which of the following is not source of Funds? A. Issue of share capital B. Sale of fixed assets C. Issue of bonus shares D. Issue of shares for consideration other than cash

Which of the following is not source of Funds?

A. Issue of share capital

B. Sale of fixed assets

C. Issue of bonus shares

D. Issue of shares for consideration other than cash

Solutions

Expert Solution

Correct option is C)

By source of funds we mean that money is coming in the business. In the given question all of them are sources of funds except issue of bonus shares. The company issues bonus shares out of its own reserves and hence there is no money received by the company for such shares. Rest all being sale of fixed assets, issue of share capital and issue of shares for consideration other than cash are a part of sources of funds.

Hence, (c) is right option.

Correct option is C)

Junaid answered 1 year ago

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