Match List - I with List - II.
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List - I |
List - II |
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(A) Inventories |
(I) Provision for taxation |
|
(B) Long term borrowing |
(II) Balance in Statement of Profit and Loss |
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(C) Reserve and surplus |
(III) Loose tools |
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(D) Short-term provision |
(IV) 12% Debentures |
Choose the correct option from below.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
Under Schedule III each item goes to its own head in the Notes to Accounts:
(A) Inventories — this matches (III) Loose tools. Loose tools are shown with stock-in-trade under Inventories.
(B) Long term borrowing — this matches (IV) 12% Debentures. Debentures are long-term borrowed funds.
(C) Reserve and surplus — this matches (II) Balance in Statement of Profit and Loss. The balance of the Statement of Profit and Loss is the ‘Surplus’.
(D) Short-term provision — this matches (I) Provision for taxation. A provision to be settled within 12 months is a short-term provision.
NCERT (2026-27 edition):
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