Question

Under which major headings and sub-headings (if any) will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ?

• A. Livestock
• B. Loose Tools
• C. Design

Hint:

Refer to Schedule III for standardised classifications for better transparency and compliance in reporting.

Answer 1

The Correct Option is A

In the Balance Sheet of a company, as per Schedule III, Part I of the Companies Act, 2013, items are presented under specific headings and sub-headings. The classification is crucial for the representation and understanding of the financial position of the company.

The following items are presented as:

• Livestock:
  • Major Heading: Non-Current Assets
  • Sub-Heading: Biological Assets (other than bearer plants)
• Loose Tools:
  • Major Heading: Non-Current Assets
  • Sub-Heading: Property, Plant and Equipment
• Design:
  • Major Heading: Non-Current Assets
  • Sub-Heading: Intangible Assets

This classification helps in categorizing the assets appropriately based on their nature and usage within the business operations.