Arrange the following account balances in the order of occurrence in the Balance Sheet (as per Schedule III) from top to bottom.
(A) Capital Redemption Reserve
(B) Equity Share capital
(C) Creditors
(D) Long Term Loan taken from SBI
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (A), (D), (C)
Schedule III sets out the Equity and Liabilities side as Shareholders’ Funds, then Non-current Liabilities, then Current Liabilities:
(B) Equity Share capital — Share Capital, the first item of Shareholders’ Funds.
(A) Capital Redemption Reserve — part of Reserves and Surplus, the next item of Shareholders’ Funds.
(D) Long Term Loan taken from SBI — Long-term borrowings, under Non-current Liabilities.
(C) Creditors — Trade payables, under Current Liabilities, which come last.
NCERT (2026-27 edition):
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