Match list I with list II and choose the correct answer from the options given below:
| LIST 1 | LIST 2 |
| A) Money received against share warrants | I) Non current liabilities |
| B) Surplus in statement of profit and loss | II) Shareholders fund |
| C) Loose tools | III) Reserves and surplus |
| D) 8% debentures | IV) Current assets |
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-II, B-III, C-IV, D-I
Each item goes to its head or sub-head in the Schedule III balance sheet.
(A) Money received against share warrants — this matches (II) Shareholders fund. It is a separate line item under shareholders’ funds.
(B) Surplus in statement of profit and loss — this matches (III) Reserves and surplus. The credit balance of profit and loss is the “Surplus” in reserves and surplus.
(C) Loose tools — this matches (IV) Current assets. Loose tools are shown under inventories.
(D) 8% debentures — this matches (I) Non current liabilities. They are long-term borrowings.
NCERT (2026-27 edition): NCERT (2026-27 edition):
NCERT (2026-27 edition):
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