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:
(i) Outstanding Salaries
(ii) Trademarks
(iii) Loose tools

Hint:

Use the Schedule-III format as a reference for balance sheet presentation — it ensures uniformity across companies.

Answer 1

Outstanding Salaries are liabilities payable within one year, thus classified as "Other Current Liabilities" under "Current Liabilities".
Trademarks are intangible in nature and provide long-term benefit to the company, thus shown as "Intangible Assets" under "Non-Current Assets".
Loose Tools, though tangible, are generally used in maintenance and classified under inventories as part of "Stores and Spares". This classification aligns with Schedule III of the Companies Act which prescribes standard formats for uniformity and comparability.