Match List I with List II.

Choose the correct answer from the options given below.

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

The correct answer is Option (1) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II).

* Inventory- (III) Current Assets.
Current Assets (a) Current investments (b) Inventories (loose tools included in inventory) (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current asset.

* Current maturity of Debentures- (IV) Short term borrowings.
It is due for the company in the current year so it is a current liability and shown under the subhead short term borrowings.
Current liabilities shall include the liabilities due within one year. It shall include the following:
* Short-term Borrowings: Such as Bank Overdraft, Cash Credit.
* Trade Payables: Sundry creditors and Bills Payable will be termed Trade Payables.
* Other Current Liabilities

* Securities Premium- (I) Reserve and Surplus.
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.

* Debentures- (II) Long term borrowings.
Debentures is a long term borrowing and shown in the non current liability.
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.