Read the following Arun is appointed as Accountant in a leading company manufacturing consumer products.
For all these years he served as an accountant in a partnership firm. He come across a company’s Balance sheet and he find to it difficult to understand which item will come in the balance sheet under major head and sub head. He took the format of a balance sheet as per schedule III of the companies Act 2013. He come across some items. You are required to inform him the major heads and sub heads to enter the items in the company’s balance sheet. Answer the following questions.
1. The Long term borrowings of the company will appear under the major head - --------------
a) Non -current liabilities
b) current liabilities
c) shareholders’ funds
d)other non-current liabilities
2. The debentures will appear under sub head -------------
a) long term borrowings
b) long term provisions
c) other long term liabilities
d) deferred tax liabilities
3. Goodwill will appear under the sub head________
a) Intangible assets
b) Tangible assets
c) Fixed assets
d) Noncurrent assets
4. Current investments will come under the major head_______________
a)current assets
b) fixed assets
c) tangible assets
d) intangible assets