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) Loose Tools
(b) Provision for Tax
(c) Copyrights

Hint:

Classification of items in the Balance Sheet is based on whether they are current or non-current, and the nature of the asset or liability.

Answer 1

According to Schedule III, Part I of the Companies Act, 2013, the classification is as follows:
- Loose Tools: Classified under Current Assets, Sub-head: Inventories.
- Provision for Tax: Classified under Current Liabilities, Sub-head: Provisions.
- Copyrights: Classified under Non-Current Assets, Sub-head: Intangible Assets.