The correct answer is Option (4) → A-IV, B-I, C-II, D-III.
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LIST I
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LIST II
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A. Revaluation Reserve
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IV. Reserve and Surplus
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B. Issued Capital
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I. Share Capital
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C. Discount on issue of debentures
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II. Other Non current Assets
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D. Loose tool
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III. Inventories
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A. Revaluation Reserve- IV. Reserve and Surplus.
Reserves and Surplus are essential components that require careful classification. The following categories help organize these items effectively:
i) Capital Reserve: This category includes reserves set aside for specific capital-related purposes.
ii) Capital Redemption Reserve: Here, reserves are accumulated to facilitate the redemption of capital.
iii) Securities Premium Reserve: This category comprises the premium received from the issuance of securities.
iv) Debenture Redemption Reserve: Reserves are earmarked to ensure the timely redemption of debentures.
v) Revaluation Reserve: In this category, the reserves reflect the revaluation of assets or liabilities.
vi) Share Options Outstanding Account: This is a separate item that records the credit balance related to employee share-based payments.
vii) Other Reserves (Specifying nature and purpose): Any additional reserves with specific purposes are grouped under this category, clearly specifying their nature and intended use.
viii) Surplus: The balance from the statement of profit and loss is disclosed here, indicating allocations and appropriations, such as dividends, bonus shares, and transfers to/from reserves.
B. Issued Capital- I. Share Capital.
Issued Capital is that part of the authorised capital which is actually issued to the public for subscription including the shares allotted to vendors and the signatories to the company’s memorandum. It is shown under the main head Shareholder’s Funds and subhead(a) Share Capital, (b) Reserves and Surplus, (c) Money received against share warrants.
C. Discount on issue of debentures- II. Other Non current Assets.
Discount on issue of debentures is shown under the main head non current assets with subhead other current assets. Borrowing costs such as discount on issue of debentures should be written-off in the same year in which debuntures are issued.
D. Loose tool- III. Inventories.
Current Assets (a) Current investments (b) Inventories (loose tools included in inventory) (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current asset | 
