Question

Under which main heading and sub heading will you classify the following items while preparing the balance sheet as per revised schedule VI (i)Security premium -----Rs. 1,00,000.(ii)Stock of work-in-progress. -----Rs. 50,000.
(iii)Provision for tax ---------Rs.80,000. Show the above items in the balance sheet schedule VI

Answer 1

1. Equity and liabilities

Shareholders fund

Reserves and surplus

a. Security premium reserve - - - - - 1,00,000

Current liabilities

Short term provisions

a. Provisions for taxation - - - - - 80,000

2. Assets

Non - current assets

a. Fixed assets

Capital work in progress - - - - - 50,000.

Thanks.