Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Excess application money which is due for refund and interest accrued on this money is shown under which subhead of the balance sheet of a company?

Options:

Current Liabilities

Short term provisions

Short term borrowings

Other current liabilities

Correct Answer:

Other current liabilities

Explanation:

The correct answer is option 4- Other current liabilities.

Excess application money which is due for refund and the interest accrued on this money is shown under the subhead "Other current liabilities" under the main head current liabilities on the balance sheet of a company. This is because it represents an obligation that the company owes and is expected to settle within a short period, usually within the current fiscal year.