question_answer

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

(i) Contingent liabilities and commitments

(ii) Fixed deposits from the public

(iii) Advance recoverable in cash

(iv) Forfeited shares account

Answer:

	Item	Main Head	Sub-head
1.	Contingent Liabilities and	To be shown as Notes to
	Commitments	Accounts below the Balance Sheet
2.	Fixed Deposits from the Public	Non-current Liabilities	Long-term Borrowings
3.	Advance Recoverable in Cash	Current Assets	Other Current Assets
4.	Forfeited Shares Account	Shareholders? Funds	Subscribed Capital (shown by way of deduction)