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
Schedule III fixes the heads and sub-heads of a company’s balance sheet.
(A) The shareholders’ funds are sub-classified as Share Capital, Reserves and Surplus & Money received against Share Warrants. True. These are the three sub-heads shown on the face of the balance sheet.
(B) Reserves and Surplus include Revaluation Reserve. True. Revaluation reserve is one of the reserves listed under this sub-head, along with capital reserve and securities premium.
(C) Both tangible and intangible assets are current assets. False. Tangible and intangible assets are fixed assets, shown under Non-Current Assets; they are held for use over many years, not for conversion into cash within the operating cycle.
(D) Deferred tax assets/liabilities are always non-current. True. They are never shown under current items.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
