Question

Under which Major Heads and Sub-Heads (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?
(i) Capital Advances
(ii)] Income received in Advance
(iii)] Stores and Spare Parts

Hint:

Refer to Schedule III of the Companies Act, 2013, for the proper classification of assets and liabilities in the Balance Sheet.

Answer 1

Schedule III, Part I of the Companies Act, 2013 specifies the classification of assets and liabilities in the Balance Sheet. The classification for the given items is: Capital Advances: These are advances given for acquiring capital assets and are classified under Non-Current Assets. Income received in Advance: This represents liabilities for services not yet rendered and is shown under Current Liabilities. Stores and Spare Parts: These are a part of inventories and are classified under Current Assets.