Question

In what order, the following assets are shown in the balance sheet of a company?
i) Trade receivables
ii) Cash
iii) Furniture and fittings
iv) Investment in shares and debentures

• A. (ii), (i), (iv), (iii)
• B. (i), (ii), (iii), (iv)
• C. (iii), (iv), (i), (ii)
• D. (iv), (iii), (ii), (i)

Answer 1

Answer: (C)

(iii), (iv), (i), (ii)

Assets are to be shown in the balance sheet in an order. There are two ways of showing the items of assets & liabilities i.e. Order of permanency and order of liquidity. This is also called as marshaling of balance sheet.

Accordingly , items to be shown as :

Furniture & Fittings

Investment in shares & debentures

Trade receivables

Cash