Question

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013: (a) Mining Rights
(b) Loose Tools
(c) Income Received in Advance

Hint:

Classify assets and liabilities carefully based on their nature, expected duration, and role in business operations.

Answer 1

\[ \begin{array}{|l|l|} \hline Item & Classification in Balance Sheet
\hline \text{Mining Rights} & \text{Non-Current Assets: Intangible Assets}
\text{Loose Tools} & \text{Current Assets: Inventories}
\text{Income Received in Advance} & \text{Current Liabilities: Other Current Liabilities}
\hline \end{array} \]