Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

What is the correct sequence to prepare company's Balance Sheet as per the standard format given according to schedule III of Companies Act 2013?
A. Non Current Liability
B. Non Current Assets
C. Shareholder's Fund
D. Current Assets
E. Current Liability

Choose the correct answer from the options given below:

Options:

C, A, B, E, D

A, B, C, D, E

C, A, E, B, D

A, C, E, B, D

Correct Answer:

C, A, E, B, D

Explanation:

EQUITY AND LIABILITIES
1) Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants
2) Share Application money pending allotment 
3) Non-current Liabilities (a) Long term borrowings (b) Deferred tax liabilities (net) (c) Other long term liabilities (d) Long term provisions
4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions


ASSETS
1) Non-Current Assets
(a) Fixed assets
       (i) Tangible assets
       (ii) Intangible assets
       (iii) Capital work-in-progress
       (iv) Intangible assets under development
(b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets
2) Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current asset