Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Under which Subheading 'Unclaimed dividend' will appear in Balance Sheet of a Company as per schedule III of Companies Act 2013.

Options:

Other Current Assets

Short term provisions

Trade payable

Other Current Liabilities

Correct Answer:

Other Current Liabilities

Explanation:

The correct answer is Option (4) - Other Current Liabilities.

Other Current Liabilities: Such as (i) Interest accrued but not due on borrowings; (ii) Interest accrued and due on borrowings; (iii) Income received in advance; (iv) Unpaid dividends; Unclaimed Dividends;  (v) Outstanding expenses; (vi) Calls in advance and interest thereon.
*Short-term Provisions : Such as (i) Provision for Tax; (ii) Provision for Doubtful Debts