Question

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:
(a) Loose Tools
(b) Provision for Tax
(c) Copyrights

Hint:

Classification of items in the Balance Sheet is based on whether they are current or non-current, and the nature of the asset or liability.

Answer 1

Pursuant to Schedule III, Part I of the Companies Act, 2013, the classification is as follows:
- Loose Tools are categorized under Current Assets, within the Inventories sub-head.
- Provision for Tax is classified under Current Liabilities, as a Provision.
- Copyrights fall under Non-Current Assets, specifically within the Intangible Assets sub-head.