Match the following items with the major head in which they are shown in the company's balance sheet.
| PARTICULARS | MAJOR HEAD |
| A) General Reserve | I) Non-Current Assets |
| B) Goodwill | II) Non-Current Liabilities |
| C) 10% Debentures | III) Shareholder's funds |
| D) Stock of finished goods | IV) Current Assets |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A-III, B-I, C-II, D-IV.
| PARTICULARS | MAJOR HEAD |
| A) General Reserve | III) Shareholder's funds |
| B) Goodwill | I) Non-Current Assets |
| C) 10% Debentures | II) Non-Current Liabilities |
| D) Stock of finished goods | IV) Current Assets |
* General reserves are shown under the head shareholder's funds in the subhead of reserves and surplus.
* Goodwill is shown under the head non-current assets in sub head fixed assets- intangible assets.
* 10% Debentures are shown under the head non-current liabilities in the subhead of long-term borrowings
* Stock of finished goods is shown under the head current assets in subhead inventories.