Question

Under which major headings and sub-headings (if any) will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ?

• A. Livestock
• B. Loose Tools
• C. Design

Hint:

Refer to Schedule III for standardised classifications for better transparency and compliance in reporting.

Answer 1

The Correct Option is A

As per Schedule III, Part I of the Companies Act, 2013, the Balance Sheet of a company categorizes financial items under defined headings and sub-headings. This structure is vital for accurately depicting and interpreting the company's financial standing.

The subsequent items are classified as follows:

• Livestock:
  • Major Heading: Non-Current Assets
  • Sub-Heading: Biological Assets (excluding bearer plants)
• Loose Tools:
  • Major Heading: Non-Current Assets
  • Sub-Heading: Property, Plant and Equipment
• Design:
  • Major Heading: Non-Current Assets
  • Sub-Heading: Intangible Assets

This categorization ensures assets are appropriately grouped according to their intrinsic characteristics and role in business activities.