question_answer

Under which main heading and sub-heading will you classify the following items while preparing the balance sheet as per Schedule III of the Companies Act, 2013.

(i) Securities premium reserve	(ii) Stock of work-in-progress
(iii) Provision for tax	(iv) Mortgage loan
(v) Patents	(vi) Investments
(vii) General reserve	(viii) Bills receivable

Answer:

S. No.	Items	Major Heads	Sub-heads
(i)	Securities Premium Reserve	Shareholders' Funds	Reserves and Surplus
(ii)	Stock of Work-in-progress	Current Assets	Inventories
(iii)	Provision for Tax	Current Liabilities	Short-term Provisions
(iv)	Mortgage Loan	Non-current Liabilities	Long-term Borrowings
(v)	Patents	Non-current Assets	Intangible Assets
(vi)	Investments	Non-current Assets	Non-current Investment
(vii)	General Reserve	Shareholders' Funds	Reserves and Surplus
(viii)	Bills Receivable	Current Assets	Trade Receivables