Rearrange the following items of current assets in an order as prescribed in schedule III of companies Act 2013 for Balance Sheet Preparation.
A. Inventories
B. Trade receivables
C. Short term loans and advances
D. Cash and Cash equivalent
E. Current investment
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - E, A, B, D, C.
The sequence of Current Assets in the balance sheet is as follows-
(E) Current investments
(A) Inventories
(B) Trade receivables include bills receivable
(D) Cash and cash equivalents include cash at bank
(C) Short-term loans and advances
ASSETS SIDE OF BALANCE SHEET
1) Non-Current Assets
(a) Fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under development
(b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets
2) Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current asset