The following are the items appearing in Equities and Liabilities side of Balance Sheet.
A. Deferred tax Assets (Net)
B. Reserve and Surplus
C. Deferred tax Liabilities (Net)
D. Long term borrowings
E. Long term loans and Advances
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → B, C and D only
Under Schedule III the Balance Sheet has two parts: Equity and Liabilities (shareholders’ funds and liabilities) and Assets. An item belongs to the first part only if it is a fund of the owners or an amount the company owes.
(A) Deferred tax Assets (Net) — Incorrect. It is a non-current asset, shown under Assets.
(B) Reserve and Surplus — Correct. It is part of Shareholders’ Funds.
(C) Deferred tax Liabilities (Net) — Correct. It is a non-current liability.
(D) Long term borrowings — Correct. It is the first item under Non-current Liabilities.
(E) Long term loans and Advances — Incorrect. Loans and advances given by the company are amounts receivable, so they are non-current assets.
NCERT (2026-27 edition):
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