Multiple choice

Unit capital is found in the

  1. liability side of the scheme's balance sheet

  2. asset side of the balance sheet

  3. revenue account

  4. equalization account

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A Correct answer
Explanation

Unit capital represents the capital contributed by investors and is a liability of the mutual fund scheme, appearing on the liability side of the balance sheet. This reflects the fund's obligation to investors, balanced by the assets held by the scheme.