Match the following with regard to company's Balance Sheet.List IList…

Match the following with regard to company's Balance Sheet.

List I	List II
A. Shareholders funds	I. Furniture and Fittings
B. Current liabilities	II. Prepaid expenses
C. Current Assets	III. Calls in Advance
D. Non current assets	IV. Surplus of Balance on statement of P and L

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → A-IV, B-III, C-II, D-I

Each item goes under the head of the company's Balance Sheet (Schedule III) where its nature places it.

(A) Shareholders funds — this matches (IV) Surplus of Balance on statement of P and L. A credit balance of the Statement of Profit and Loss belongs to the shareholders and is shown under Reserves and Surplus, a part of shareholders' funds.

(B) Current liabilities — this matches (III) Calls in Advance. Money received before a call is made is a liability of the company until the call falls due, and is shown under other current liabilities.

(C) Current Assets — this matches (II) Prepaid expenses. An expense paid in advance gives a benefit within the next year and is shown among other current assets.

(D) Non current assets — this matches (I) Furniture and Fittings. Furniture is held for long-term use and is shown under property, plant and equipment (tangible assets).

NCERT (2026-27 edition):
Form of Balance Sheet

Extract from the NCERT textbook

NCERT (2026-27 edition):
Calls in Advance – “Sometimes shareholders pay a part or the whole of the amount of the calls not yet made. The amount so received from the shareholders is known as “Calls in Advance”. The amount received in advance is a liability of the company and should be credited to ‘Call in Advance Account.” The amount received will be adjusted towards the payment of calls as and when they becomes due. Table F of the Companies Act provides for the payment of interest on calls in advance at a rate not exceeding 12% per annum.”

NCERT (2026-27 edition):
Current Ratio – “… Current assets include current investments, inventories, trade receivables (debtors and bills receivables), cash and cash equivalents, short-term loans and advances and other current assets such as prepaid expenses, advance tax and accrued income, etc.”