Match List – I with List – II.
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LIST I |
LIST II |
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A. Capital Reserve |
I. Current Assets |
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B. Inventories |
II. Non-Current Liabilities |
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C. 8% Debentures |
III. Current Liabilities |
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D. Provision for tax |
IV. Reserve and Surplus |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A-IV, B-I, C-II, D-III
Each item goes to its Schedule III head according to whether it is a reserve, an asset, or a liability due later or within 12 months:
(A) Capital Reserve — this matches (IV) Reserve and Surplus. It is a reserve created out of capital profits.
(B) Inventories — this matches (I) Current Assets. Stock is used or sold within the operating cycle.
(C) 8% Debentures — this matches (II) Non-Current Liabilities. Debentures are long-term borrowings.
(D) Provision for tax — this matches (III) Current Liabilities. It is settled within 12 months, so it is a short-term provision.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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