| A. Intangible Assets | I. Provision for taxation |
| B. Short term provision | II. Trade creditor |
| C. Long term borrowings | III. 10% debentures |
| D. Current liabilities | IV. Goodwill |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A-IV, B-I, C- III, D- II
Each item goes under the heading of the Balance Sheet (Schedule III) where it belongs.
A. Intangible Assets — this matches IV. Goodwill. Goodwill has no physical existence, so it is shown under Fixed assets as an intangible asset.
B. Short term provision — this matches I. Provision for taxation. The tax provision will be settled within the next twelve months, so it is a short-term provision under current liabilities.
C. Long term borrowings — this matches III. 10% debentures. Debentures are a loan repayable after many years, so they are a long-term borrowing under non-current liabilities.
D. Current liabilities — this matches II. Trade creditor. Creditors for goods and services are trade payables, payable within the operating cycle, so they are current liabilities.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
