Match list I with list II and choose the correct answer from the options given below:
| LIST 1 | LIST 2 |
| A) Prepaid insurance | I) Share Capital |
| B) Unclaimed dividend | II) Intangible assets |
| C) Patent | III) Other current assets |
| D) Calls in arrears | IV) Other current liabilities |
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A-III, B-IV, C-II, D-I
Each item goes to its Schedule III head in the company balance sheet.
(A) Prepaid insurance — this matches (III) Other current assets. Prepaid expenses are current assets shown under “other current assets”.
(B) Unclaimed dividend — this matches (IV) Other current liabilities. Dividend declared but not yet claimed is owed to shareholders and payable on demand.
(C) Patent — this matches (II) Intangible assets. A patent has value but no physical form.
(D) Calls in arrears — this matches (I) Share Capital. They are deducted from the called-up capital in the share capital note.
NCERT (2026-27 edition): NCERT (2026-27 edition): NCERT (2026-27 edition):
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