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) Prepaid expenses
(b) Capital Work-in-Progress
(c) Interest accrued and due on debentures

Hint:

Follow Schedule III headings strictly: classify based on time period (12 months rule) and nature of asset/liability.

Answer 1

- Prepaid Expenses represent short-term prepayments, categorized under Other Current Assets.
- Capital Work-in-Progress, associated with fixed asset construction, is classified under Non-Current Assets.
- Interest accrued and due on debentures is a liability and falls under Other Current Liabilities.