What is the sequence of writing the following item in the balance sheet of the company according to the Companies Act,2013?

1) Shareholder’s Funds
2) Current Liabilities
3) Share Application money pending allotment
4) Non-current Liabilities

Choose the correct answer from the options given below.

1342

The correct answer is option 2- 1342.

1) Shareholder’s Funds
3) Share Application money pending allotment
4) Non-current Liabilities
2) Current Liabilities

THE FORMAT OF (EQUITY AND LIABILITIES) SIDE OF BALANCE SHEET OF A COMPANY IS AS FOLLOWS-

I) Shareholder’s Funds

• (a) Share Capital
• (b) Reserves and Surplus
• (c) Money received against share warrants

II) Share Application money pending allotment

III) Non-current Liabilities

• (a) Long term borrowings
• (b) Deferred tax liabilities (net)
• (c) Other long term liabilities
• (d) Long term provisions

IV) Current Liabilities

• (a) Short-term borrowings
• (b) Trade payables
• (c) Other current liabilities
• (d) Short-term provisions