Which entries are correct in accordance with the manner prescribed in the revised Schedule III to the Companies Act, 2013-
(A) The shareholders' funds are sub-classified as Share Capital, Reserves and Surplus & Money received against Share Warrants.
(B) Reserves and Surplus include Revaluation Reserve.
(C) Both tangible and intangible assets are current assets.
(D) Deferred tax assets/liabilities are always non-current.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (D) only
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(A) The shareholders' funds are sub-classified as Share Capital, Reserves and Surplus & Money received against Share Warrants. Correct — These are indeed the three main sub-heads under “Shareholders’ Funds” on the liabilities side of the balance sheet.
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(B) Reserves and Surplus include Revaluation Reserve. Correct — “Revaluation Reserve” is a part of Reserves and Surplus as per the prescribed format.
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(C) Both tangible and intangible assets are current assets. Incorrect — Tangible and intangible assets are non-current assets, not current assets.
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(D) Deferred tax assets/liabilities are always non-current. Correct — Deferred tax assets and liabilities are always classified as non-current as per Schedule III.