Question
Which of the following Statement is correct with respect
to cash and cash equivalents?Solution
As per Schedule III of Companies Act, 2013, Cash and Cash Equivalents may be classified as Balances with banks, Cheques, drafts on hand, cash on hand among others. Separate disclosures for: · earmarked balances with banks · Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments · Repatriation restrictions, if any, in respect of cash and bank balances · Bank deposits with more than twelve months maturity (as such, it can be said that deposits of less than 12 months need not be disclosed separately)
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