question_answer

Under which head and sub-head will the following items appear in the balance sheet of a company?

(i) Share option outstanding account

(ii) Interest accrued and due on secured loans.

(iii) Advances recoverable in cash

(iv) Prepaid rent

Answer:

	Items	Head	Sub-head
1.	Share option outstanding account	Shareholders, Funds	Reserves and surplus
2.	Interest accrued and due on secured loans	Current liabilities	Other current liabilities
3.	Advances recoverable in cash	Current assets	Other current assets
4.	Prepaid rent	Current assets	Other current assets