In what order, the following assets are shown in the balance sheet of a company ? (i) Trade receivables (ii) Cash (iii) Furniture and fittings (iv) Investment in shares and debentures Codes :
(iii), (iv), (i), (ii)
A company prepares its balance sheet in the vertical format of Schedule III to the Companies Act, 2013. Assets are shown in the order of permanence: non-current assets first, then current assets.
Non-current assets come first, beginning with Property, Plant and Equipment, so Furniture and fittings (iii) is shown first. Non-current investments, such as Investment in shares and debentures (iv), follow the fixed assets.
Current assets are listed next in the order: current investments, inventories, trade receivables, cash and cash equivalents. So Trade receivables (i) comes before Cash (ii), which is shown last.
The sequence is therefore Furniture and fittings, Investments, Trade receivables, Cash, that is (iii), (iv), (i), (ii).
Hence, the answer is (iii), (iv), (i), (ii).
Important Questions from Balance sheet statement
Match the items of List – I with those of List – II and choose the correct code :
List – I List – II a. Provision for taxation i. Current Assets b. Live-stock ii. Unsecured loans c. Sundry Debtors iii. Fixed Assets d. Interest accrued on unsecured loans iv. Provisions Codes :
A businessman can find out what his business owns and what it owes from _______.
Which of the following options is an INCORRECT pair considering a firm's balance sheet?
A trial balance shows
(i) Credit balances
(ii) Debit balances
Which of the following pairs is NOT correctly matched in the context of account balances shown in the Trial Balance?
