Question

State the Headings under which the fallowing items are shown in the

balance sheet of the company.

i. Preliminary Expenses

ii. Loose tools

iii. Discount on issue of shares

iv. Forfeiture of shares

v. Bank overdraft

vi. Provision for taxation

vii. Goodwill

viii. Loan on mortgage

ix. Fixed deposits raised from public

x. 6% Debentures

xi. Share premium

xii. Underwriting Commission

xiii. Sinking Fund

xiv. Accrued interest on investment

xv. Work-in-progress

xvi. Livestock.​

Answer 1

1)  Preliminary Expenses  :- Other Assets'

ii. Loose tools     :- Tangible assets

iii. Discount on issue of shares  :-   Other Assets'

iv. Forfeiture of shares  : assets side other current assets or share capital

v. Bank overdraft   :- cash and cash equivalant

vi. Provision for taxation  :- current liabilities

vii. Goodwill  :- intangible assets

viii. Loan on mortgage  :- loans and advances

ix. Fixed deposits raised from public  :- loans and advances

x. 6% Debentures  :- non current liabilities

xi. Share premium :- reserve and surplus

xii. Underwriting Commission  ( current liabilities)

xiii. Sinking Fund  :- Other Assets'

xiv. Accrued interest on investment  :- current assets

xv. Work-in-progress  :-inventory ( current assets)

xvi. Livestock.​ (depending on business nature)