Question

What is meant by Grouping and Marshalling of assets and liabilities? Explain the ways in which a balance sheet may be marshalled.

Answer 1

Answer:

Grouping and Marshalling or Arrangement of Assets and Liabilities. The assets and liabilities should be shown in a certain order in the Balance Sheet. This is called 'Grouping' and 'Marshalling' of the Balance Sheet. Thus, 'Grouping' means putting together items of similar nature under a common heading.Aug