Match List - I with List - II.

Choose the correct option from below.

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

The correct answer is Option 3 - (A)-(III), (B)-(IV), (C)-(II), (D)-(I).

* Inventories- Loose tools. Loose tools are shown under the Inventories subhead in the Current Assets section of a company's balance sheet. Inventories are assets that are held for sale in the ordinary course of business, or in the process of production or manufacture for such sale, or are materials and supplies to be consumed in the production process or rendering of services. Loose tools are considered to be inventories because they are used in the production process and are expected to be consumed within one year. 

* Long term borrowing- 12% Debentures. NON-CURRENT LIABILITIES shall include the liabilities due after one year. It shall include the following:
Long-term Borrowings: Such as Debentures, Loan from Bank, Loan from other parties.
Deferred Tax Liabilities.
Other Long term Liabilities: Such as Premium Payable on Redemption of Debentures; Premium Payable on Redemption of Preference Shares, Public Deposits (Unless specified, it will be assumed that deposits are for more than one year.) Long-term Provisions: Such as Provision for Employee Benefits, Provision for Provident Fund, Provision for Warranties.

* Reserve and surplus- Balance in Statement of Profit and Loss. Reserves and Surplus are essential components that require careful classification. The following categories help organize these items effectively:
i) Capital Reserve: This category includes reserves set aside for specific capital-related purposes.
ii) Capital Redemption Reserve: Here, reserves are accumulated to facilitate the redemption of capital.
iii) Securities Premium Reserve: This category comprises the premium received from the issuance of securities.
iv) Debenture Redemption Reserve: Reserves are earmarked to ensure the timely redemption of debentures.
v) Revaluation Reserve: In this category, the reserves reflect the revaluation of assets or liabilities.
vi) Share Options Outstanding Account: This is a separate item that records the credit balance related to employee share-based payments.
vii) Other Reserves (Specifying nature and purpose): Any additional reserves with specific purposes are grouped under this category, clearly specifying their nature and intended use.
viii) Surplus: The balance from the statement of profit and loss is disclosed here, indicating allocations and appropriations, such as dividends, bonus shares, and transfers to/from reserves.

* Short-term provision- Provision for doubtful debts. Other Current Liabilities: Such as (i) Interest accrued but not due on borrowings; (ii) Interest accrued and due on borrowings; (iii) Income received in advance; (iv) Unpaid dividends; Unclaimed Dividends;  (v) Outstanding expenses; (vi) Calls in advance and interest thereon.
*Short-term Provisions : Such as (i) Provision for Tax; (ii) Provision for Doubtful Debts