Question

Classify the following under the respective head in

Q: Answer-Classify the following under the respective head in balance sheet: Items: I. Current maturities o...

Current maturities of long term debt is a current liability as now the debt has been matured for repayment. Debentures are non-current liability, this is because debentures are long-term borrowing instruments with maturities usually extending beyond one year. Uncalled liability on shares is classified as Contingent Liabilities commitments. Deferred tax liabilities are expected to be settled more than one year into the future, so they fall under the non-current liabilities category.

balance sheet: Items: I. Current maturities of long-term debt II. Debentures III. Uncalled liability on shares IV. Deferred tax liability Head: A. Non-Current Liabilities B. Current Liabilities C. Contingent Liabilities & commitments

A I, II & IV: A; III: B

B I & II: B; III & IV: A

C I: B; II, III & IV: A

D I & II: A; III: B; IV: C

E I: B; II & IV: A; III: C

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Classify the following under the respective head in

Solution