Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

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.

Options:

A-III, B-II, C-I, D-IV

A-I, B-III, C-II, D-IV

A-III, B-I, C-II, D-IV

A-I, B-II, C-III, D-IV

Correct Answer:

A-III, B-I, C-II, D-IV

Explanation:

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.