Question

(Classification of Assets).
State the major heads under which the items appearing in the Assets part of the company's Balance Sheet are classified.

Answer 1

Answer:

a) SHARE CAPITAL COMES UNDER SHAREHOLDERS FUNDS (LIABILITY SIDE)

b) DEBENTURES COMES UNDER LONG TERM BORROWINGS (LIABILITY SIDE)

c) TRADE PAYABLE COMES UNDER CURRENT LIABILITY (LIABILITY SIDE)

d) FURNITURE COMES UNDER TANGIBLE ASSETS IN FIXED ASSETS ASSETS SIDE)

e) INVENTORY ( NON-QUICK ASSETS) COMES UNDER CURRENT ASSETS (ASSETS SIDE)