Question

Which of the following is not contained in Account group – Current Liabilities in the Balance Sheet?

• A. Bank Overdraft
• B. Duties and Taxes
• C. Provisions
• D. Sundry Creditors

Hint:

Provisions are shown under a separate head in liabilities — not clubbed with “Current Liabilities” like overdraft or creditors.

Answer 1

The Correct Option is C

In accounting, under Schedule III of the Companies Act, the Balance Sheet classifies:
- Current Liabilities to include items like:
- Bank Overdraft
- Sundry Creditors
- Duties and Taxes
- Other Payables
However, Provisions — such as Provision for Tax, Provision for Dividend, etc. — are not grouped under “Current Liabilities” directly.
They form a separate major heading under “Provisions” — either Current or Non-Current depending on when they are due.
Thus, Provisions are not listed under the group “Current Liabilities” in the strict sense.