Match List-I with List-II.
| LIST I | LIST II |
| (A) Reserves and Surplus | (I) Share Options Outstanding Account |
| (B) Non-Current Liabilities | (II) Long term provisions |
| (C) Current Liabilities | (III) Short-term borrowing |
| (D) Shareholders fund | (IV) Calls in arrears |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is option 1- (A)-(I), (B)-(II), (C)-(III), (D)-(IV).
| LIST I | LIST II |
| (A) Reserves and Surplus | (I) Share Options Outstanding Account |
| (B) Non-Current Liabilities | (II) Long term provisions |
| (C) Current Liabilities | (III) Short-term borrowing |
| (D) Shareholders fund | (IV) Calls in arrears |
(A) Reserves and Surplus- (I) Share Options Outstanding Account.
Reserves and Surplus are essential components that require careful classification. The following categories help organize these items effectively:
i) Capital Reserve: This category includes reserves set aside for specific capital-related purposes.
ii) Capital Redemption Reserve: Here, reserves are accumulated to facilitate the redemption of capital.
iii) Securities Premium Reserve: This category comprises the premium received from the issuance of securities.
iv) Debenture Redemption Reserve: Reserves are earmarked to ensure the timely redemption of debentures.
v) Revaluation Reserve: In this category, the reserves reflect the revaluation of assets or liabilities.
vi) Share Options Outstanding Account: This is a separate item that records the credit balance related to employee share-based payments.
vii) Other Reserves (Specifying nature and purpose): Any additional reserves with specific purposes are grouped under this category, clearly specifying their nature and intended use.
viii) Surplus: The balance from the statement of profit and loss is disclosed here, indicating allocations and appropriations, such as dividends, bonus shares, and transfers to/from reserves.
(B) Non-current Liabilities- (II) Long term provisions.
Non-current Liabilities
- (a) Long term borrowings
- (b) Deferred tax liabilities (net)
- (c) Other long term liabilities
- (d) Long term provisions
(C) Current Liabilities- (III) Short-term borrowing.
Current Liabilities
- (a) Short-term borrowings
- (b) Trade payables
- (c) Other current liabilities
- (d) Short-term provisions
(D) Shareholder's Fund- (IV) Calls in arrears.
Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants
* Calls in arrear is deducted from the share capital