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.
Answer & explanation
Correct answer: option 2
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