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Question
Under which main head and sub-head of Equity and Liabilities part of the Balance Sheet are the following items classified or shown:
(i) Bonds
(ii) Debentures
(iii) Public Deposits
(iv) Capital Redemption Reserve
(v) Forfeited Shares Accounts
(vi) Sundry Creditors and
(vii) Interest Accrued but not Due on Debentures ?
Solution
| Items | Main head | Sub-head |
| Bonds | Non-Current Liabilities | Long Term Borrowings |
| Debentures | Non-Current Liabilities | Long Term Borrowings |
| Deposits | Non-Current Liabilities | Long Term Borrowings |
| Capital redemption Reserve | Shareholder’s Funds | Reserves and Surplus |
| Share Forfeiture Account | Shareholder’s Funds | Subscribed Capital under Share Capital |
| Sundry Creditors | Current Liabilities | Trade Payables |
| Interest Accrued but not due on Debentures |
Current Liabilities | Other Current Liabilities |
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| ______ | ______ |
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