The Companies Act 2013 provides Vertical Format for presentation of Balance Sheet items. Select the correct sequence as per Vertical Format.
(A) Inventories
(B) Share Capital
(C) Long Term Loans and Advances (given)
(D) Deferred tax Liabilities (net)
(E) Trade Payable
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (D), (E), (C), (A)
The vertical form of Balance Sheet under Schedule III shows Equity and Liabilities first (shareholders’ funds, then non-current liabilities, then current liabilities) and Assets next (non-current assets, then current assets).
(B) Share Capital — first: it is the first item under Shareholders’ Funds.
(D) Deferred tax Liabilities (net) — second: a non-current liability.
(E) Trade Payable — third: a current liability, the last group of Equity and Liabilities.
(C) Long Term Loans and Advances (given) — fourth: a non-current asset.
(A) Inventories — fifth: a current asset.
NCERT (2026-27 edition):
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