It is necessary that the balance pertaining to each item of assets and liabilities contained in the Balance Sheet be split into its current and non-current portions on the reporting date.

True

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False

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Partially True

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None of these

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Solution

The correct option is A
True

True. It is necessary that the balance pertaining to each item of assets and liabilities contained in the Balance Sheet be split into its current and non-current portions on the reporting date.

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Similar questions

As per the Schedule III, all items of assets and liabilities are to be bifurcated between current and non-current portions.

Q. From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets
(iii) Current Liabilities
(iv) Working Capital

Balance Sheet as at 31^st March, 2018
Liabilities	₹	Assets	₹
Trade Creditors	42,000	Stock in Hand	48,000
Expenses Accrued	3,200	Debtors	36,000
Bank Overdraft	4,800	Prepaid Expenses	400
Long-Term Loan	20,000	Goodwill	20,000
Interest on Loan	1,000	Land	20,000
Capital	93,400	Plant	32,000
		Furniture	8,000
	1,64,400		1,64,400

Q. The balance sheet is a __________ of the assets, liabilities and capital of concern as on particular date.

In some cases, the items presented under the “non-current” head of the Balance Sheet do not have a corresponding “current” head especially for Assets.

Q. Prepare a common size Balance Sheet of KJ Ltd. from the following information:

	Particulars	Note No.	31.3.2017 Rs.	31.3.2016 Rs.
I-	Equity and Liabilities:-
1.	Shareholder's Funds		$8, 00, 000$	$4, 00, 000$
2.	Non-current Liabilites		$5, 00, 000$	$2, 00, 000$
3.	Current Liabilities		$3, 00, 000$	$2, 00, 000$
		Total	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 16, 00, 000 - --------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 00, 000 - -------- -$
II-	Assets
1.	Non-current Assets		$10, 00, 000$	$5, 00, 000$
2.	Current Assets		$6, 00, 000$	$3, 00, 000$
		Total	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 16, 00, 000 - --------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 00, 000 - -------- -$

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It is necessary that the balance pertaining to each item of assets and liabilities contained in the Balance Sheet be split into its current and non-current portions on the reporting date.

The correct option is A True True. It is necessary that the balance pertaining to each item of assets and liabilities contained in the Balance Sheet be split into its current and non-current portions on the reporting date.

The correct option is A
True

True. It is necessary that the balance pertaining to each item of assets and liabilities contained in the Balance Sheet be split into its current and non-current portions on the reporting date.