Question

Under which major heads and sub-heads will the following items appear in the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013? (i) Capital Reserve
(ii) Trade Payables
(iii) Goodwill

Hint:

Follow Schedule III structure: Capital items go under equity/reserves,
liabilities under current/non-current, and intangible assets under non-current assets.

Answer 1

Capital Reserve: It is part of reserves created from capital profits.
\(\Rightarrow\) Reported under “Reserves and Surplus” within “Shareholders’ Funds”.
Trade Payables: Represents amounts payable for goods and services.
\(\Rightarrow\) Shown under “Current Liabilities” with its own sub-head “Trade Payables”.
Goodwill: An intangible asset arising from acquisition or reputation.
\(\Rightarrow\) Placed under “Intangible Assets” within “Non-Current Assets”.