Under which sub-heading will 'Unclaimed dividend' appear in the Balan…

The correct answer is Option (4) → Other Current Liabilities

Unclaimed dividend is dividend declared by the company but not yet collected by the shareholders. The company still owes it and must pay it on demand, so it is a current liability. It is not a borrowing, not an amount owed for goods or services, and not a provision, so Schedule III places it under Other Current Liabilities.

Option (1) Other Current Assets — Incorrect. It is an amount the company owes, not something it owns.

Option (2) Short term provisions — Incorrect. A provision is an estimate for a liability of uncertain amount (e.g. provision for tax); a declared dividend is a known, fixed amount.

Option (3) Trade payable — Incorrect. Trade payables arise only from the purchase of goods and services in the normal course of business.