Question

Under what heads and sub-heads will the following items appear in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:

(i) Stores and Spares;

(ii) Proposed Dividend;

(iii) Computer Software.

(iv) Loose Tools

(v) Provision for employees’ benefits

(vi) Unpaid dividend

Answer 1

| S. No. | Items | Major Head | Sub-Head |
| (i) | Stores and Spares | Current Assets | Inventories |
| (ii) | Proposed Dividend | Current Liabilities | Short-term Provisions |
| (iii) | Computer Software | Non-Current Assets | Fixed Assets: Intangible Assets |
| (iv) | Loose Tools | Current Assets | Inventories |
| (v) | Provision for Employees’ benefits | Non-Current Liabilities OR Current Liabilities | Long-term provisions OR Short-term Provisions |
| | Depending upon the nature, i.e. it will be classified as current if a company does not have an unconditional right as on Balance Sheet date to defer its settlement for 12 months after reporting date, otherwise it will be classified as non-current. |
| (vi) | Unpaid Dividend | Current Liabilities | Other Current Liabilities |