Question

Under which major headings the following items will be presented in the balance sheet of a company as per Schedule VI Part I of the Companies Act, 1956?

(1) Loans provided repayable on demand

(2) Goodwill

(3) Copyrights

(4) Loose tools

(5) Cheques

(6) General Reserve

(7) Stock of finished goods and

(8) 9% debentures repayable after three years

Answer 1

| Item | Major Head |
| (1) Loans provided repayable on demand | Current Assets |
| (2) Goodwill | Fixed Assets/Non-current assets |
| (3) Copy rights | Fixed Assets/Non-current assets |
| (4) Loose tools | Inventories /Current Assets |
| (5) Cheque | Cash & cash equivalent/Current Assets |
| (6) General reserve | Reserve and surplus |
| (7) Stock of finished goods | Inventory/Current Assets |
| (8) 9% debenture repayable after three years | Long term borrowings |