Question

Under which major heads and subheads of the Balance Sheet of a company, will the following items be shown:-

(i) Loose Tools

(ii) Retirement Benefits Payable to employees

(iii) Patents

(iv) Interest on Calls in Advance

Answer 1

| | Items | Major Head of Balance Sheet | Sub Head of Balance Sheet |
| (i) | Loose Tools | Current Assets | Inventories |
| (ii) | Retirement Benefits Payable to employees | Non-Current Liabilities | Long Term Provisions |
| (iii) | Patents | Non-Current Assets | Fixed Asset (Intangible) |
| (iv) | Interest on Calls in Advance | Current Liabilities | Other current Liabilities |