Question

Correct sequence of Balance Sheet
A. Short term Loans and Advances
B. Deferred tax liability (Net)
C. Shareholders Fund
D. Capital (work in-progress)
E. Current Liabilities
Choose the correct Option:

• A. C, B, A, E and D
• B. C, B, D, E and A
• C. C, B, D, A and E
• D. C, B, E, D and A

Hint:

Balance Sheet presentation flows from long-term liabilities to short-term, followed by long-term assets to short-term assets, helping evaluate liquidity and solvency effectively.

Answer 1

The Correct Option is D

The proper sequence on the balance sheet typically follows:
1. Shareholders' Fund (C): Represents the owners’ equity.
2. Deferred Tax Liability (Net) (B): Long-term liabilities related to taxes.
3. Current Liabilities (E): Short-term debts payable within a year.
4. Capital Work in Progress (D): Long-term assets under development.
5. Short-term Loans and Advances (A): Current assets expected to be converted to cash soon.