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Home Questions PG9H9HK7CD
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

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.

Options:

A-IV, B-III, C-II, D-I

A-IV, B-II, C-I, D-III

A-IV, B-I, C-II, D-III

A-I, B-IV, C-II, D-III

Correct Answer:

A-IV, B-I, C-II, D-III

Explanation:

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

 

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