Match List I with List II. List - I List - II (A) Inventory (I) Reser…

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

Each item is placed under its head in the Schedule III balance sheet.

(A) Inventory — this matches (III) Current Assets. Inventories are always treated as current and shown under current assets.
(B) Current maturity of Debentures — this matches (IV) Short term borrowings. The part of debentures repayable within twelve months is a short-term obligation.
(C) Securities Premium — this matches (I) Reserve and Surplus. Securities premium is shown in the note on reserves and surplus.
(D) Debentures — this matches (II) Long term borrowings. Debentures repayable after twelve months are long-term borrowings.

Note: The NCERT text still places current maturities of long-term debt under “other current liabilities”, the position before Schedule III was amended in 2021; the amended Schedule III shows them under short-term borrowings, the head used in this question.