How should the following assets be shown in the permanence order in the balance sheet of a company ?
1.Patents
2.Cash at bank
3. Stock in trade
4. Land and building
5. Cash in hand

1 , 4 , 3 , 2 , 5

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4, 1 , 3, 2 , 5

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4, 3, 5, 2, 1

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5, 2, 1 , 3 , 4

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Solution

The correct option is D 4, 1 , 3, 2 , 5
Assets and Liabilities are to be shown in the Balance Sheet on the basis of permanency or liquidity order.

In the given case, below is the sequence of assets to be shown in balance sheet on permanency basis:

4. Land & Building
1. Patents
3. Stock in trade
2. Cash at Bank
5. Cash in Hand

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Similar questions

Q. Arrange assets in the order of permanence:
Sundry Debtors, Stock, Investment, Land and Building, Cash in Hand, Motor Vehicle, Cash at Bank, Goodwill, Plant and Machinery, Furniture, Loose Tools, Marketable Securities.

Q. From the following information, prepare Balance Sheet of a trader as at 31st March, 2018 arranging the assets and liabilities–(i) in order of permanence and (ii) in order of liquidity:

	₹		₹
Goodwill	20,000	Bank	20,000
Capital	1,80,000	Sundry Creditors	63,000
Liabilities for Expenses	1,200	Bills Receivable	13,000
Cash in Hand	1,000	Plant and Machinery	40,000
Investment	20,000	Provision for Doubtful Debts	2,500
Bills Payable	10,700	Closing Stock	80,000
Net Profit	92,600	Furniture	16,000
Sundry Debtors	50,000	Drawing	30,000
Land and Building	60,000

PRACTICAL PROBLEM

Raj and Dev are partners sharing profits and losses 3:2 respectively. Their position on 31^st March, 2011

Balance Sheet as on 31^st March, 2011
Liabilities		Amount Rs	Assets		Amount Rs
Capital A/c’s	Raj	1,00,000	Buildings		1,00,000
	Dev	75,000	Furniture		10,000
Creditors		10,000	Stock		31,000
Bills Payable		5,000	Debtors	50,000
General Reserve		15,000	(-) R.D.D.	1,000	49,000
			Bank Balance		15,000
		2,05,000			2,05,000

On 1^st April, 2011 they admitted Manoj on following terms:

1) Manoj should bring in cash Rs 1,00,000 as a capital for 1/5^th share in future profit and Rs 25,000 as goodwill.

2) Building should be revalued for Rs 1,25,000.

3) Depreciate furniture at 12 ½ % p.a. and stock at 10% p.a.

4) R.D.D. should be maintained as it is.

5) The Capital accounts of partners should be adjusted in their new profit sharing ratio through bank account.

Prepare, Profit and Loss Adjustment Account, Capital Accounts, Balance Sheet of new firm and show how you have calculated new ratio and new capital.

Q. Rani and Geeta are partners sharing profits and losses 3 : 2 respectively. Their position on

31^{s t}

March, 2013 was as follows:
On

1^{s t}

April, 2013 they admitted Suvarna on the following terms:
(1) Suvarna should bring in cash Rs. 1,00,000 as capital for

{\frac{1}{5}}^{s t}

share in future profit and Rs. 25,000 as goodwill.
(2) Building should be revalued at Rs. 1,25,000.
(3) Depreciated furniture @ 12

\frac{1}{2}

% p.a. and stock @ 10% p.a.
(4) R.D.D. should be maintained as it is.
(5) The capital Accounts of partners should be adjusted in their new profit sharing ratio through bank account.
Prepare:
profit and loss adjustment account, capital accounts and balance sheet of the new firm.

From the following balances extracted from the books of Raga Ltd. Prepare a trading and profit and loss account for the year ended March 31, 20117 and a balance sheet as on that date.

Account Title	Amount Rs	Account Title	Amount Rs
Drawings	20,000	Sales	2,20,000
Land and Buildings	12,000	Capital	1,01,110
Plant and Machinery	40,000	Discount	1,260
Carriage inwards	100	Apprentice premium	5,230
Wages	500	Bills payable	1,28,870
Salary	2,000	Purchases return	10,000
Sales return	200
Bank charges	200
Coal, Gas and Water	1,200
Purchases	1,50,000
Trade Expenses	3,800
Stock (Opening)	76,800
Cash at bank	50,000
Rates and Taxes	870
Bills receivable	24,500
Sundry debtors	54,300
Cash in hand	30,000
	4,66,470		4,66,470

The additional information is as under:

1. Closing stock was valued at the end of the year Rs, 20,000.

2. Depreciation on plant and machinery charged at 5% and land and building at 10%.

3. Discount on debtors at 3%.

4. Make a provision at 5% on debtors for doubtful debts.

5. Salary outstanding was Rs 100 and Wages prepaid was Rs 40.

6. The manager is entitled a commission of 5% on net profit after charging such commission.

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How should the following assets be shown in the permanence order in the balance sheet of a company ?1.Patents2.Cash at bank3. Stock in trade4. Land and building5. Cash in hand

How should the following assets be shown in the permanence order in the balance sheet of a company ?
1.Patents
2.Cash at bank
3. Stock in trade
4. Land and building
5. Cash in hand