Match the following.
| Item | Major Head |
| A) Provision for provident fund | I) Contingent liabilities in notes to accounts |
| B) Proposed dividend | II) Current liabilities |
| C) Unpaid dividend | III) Shareholder's funds |
| D) Calls in arrears | IV) Non-Current liabilities |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A-IV, B-I, C-II, D-III.
| Item | Major Head |
| A) Provision for provident fund | IV) Non-Current liabilities |
| B) Proposed dividend | I) Contingent liabilities in notes to accounts |
| C) Unpaid dividend | II) Current liabilities |
| D) Calls in arrears | III) Shareholder's funds |
* Provident fund is made for employees. It is a long-term provision.
*Proposed dividend is shown in notes to accounts as it is not approved. After approving it will become liability.
*Unpaid dividend is not claimed by shareholders. But they can claim it anytime, so it current liabilities.
* Calls in arrears is shown as deduction while calculating share capital.
1) Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants
2) Non-current Liabilities (a) Long term borrowings (b) Deferred tax liabilities (net) (c) Other long term liabilities (d) Long term provisions
3) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions