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: Livestock Accrued incomes Unpaid dividend

Hint:

Classification of items in the Balance Sheet should adhere to the requirements of Schedule III, Part I of the Companies Act, 2013.

Answer 1

Livestock: Major Head: Non-Current Assets
Sub-Head: Property, Plant and Equipment
Accrued incomes: Major Head: Current Assets
Sub-Head: Other Current Assets
Unpaid dividend: Major Head: Current Liabilities
Sub-Head: Other Current Liabilities
Journal Entries: \[ \begin{array}{|l|l|r|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{Debit (₹)} & \textbf{Credit (₹)} \\ \hline -- & \text{Livestock A/c Dr.} & X,XXX & -- \\ & \text{To Bank/Cash A/c} & -- & X,XXX \\ & \text{(Livestock purchased and recorded as part of Property, Plant, and Equipment)} & & \\ \hline -- & \text{Accrued Income A/c Dr.} & X,XXX & -- \\ & \text{To Income A/c} & -- & X,XXX \\ & \text{(Income accrued but not yet received)} & & \\ \hline -- & \text{Dividend A/c Dr.} & X,XXX & -- \\ & \text{To Unpaid Dividend A/c} & -- & X,XXX \\ & \text{(Unpaid dividend recorded as liability)} & & \\ \hline \end{array} \]