Rearrange the following items of "Equity and Liabilities" head of Balance Sheet in an order as prescribed in Companies Act 2013, Schedule III.
(A) Current Liabilities
(B) Shareholders' funds
(C) Share application money pending allotment
(D) Non Current Liabilities
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (B), (C), (D), (A)
Schedule III lists the heads under “Equity and Liabilities” from the owners’ funds to the shortest-term obligations:
(B) Shareholders’ funds come first: share capital, reserves and surplus, and money received against share warrants.
(C) Share application money pending allotment follows, as money received for shares not yet allotted.
(D) Non-current liabilities come next: long-term borrowings, deferred tax liabilities, other long-term liabilities and long-term provisions.
(A) Current liabilities come last: short-term borrowings, trade payables, other current liabilities and short-term provisions.
NCERT (2026-27 edition):
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