State giving reason whether Trade Payables are classified as Current Liabilities or Non-current Liabilities in the Calance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:

Case
Operating Cycle Period (Months)

Expected Payment Period (Months

1
10

11

2
10

12

3 10 13

4 14 13

5
15

16

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Solution

Case

As Current Liabilities or Non- Current Liabilities

Reason

1.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

2.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

3.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

4.

Current Liabilities

Expected payment is less than operating cycle

5.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

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Similar questions

Q. State giving reason whether Trade Receivables are classified as Current Assets or Non-current Assets in the Balance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases.


Case	Operating Cycle Period (Months)	Expected Realisation Period (Months)

1	10	11
2	10	12
3	10	13
4	14	13
5	15	16

Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-heads mentioned which were not as per Schedule III of the Companies Act, 2013.

$\begin{matrix} Items & Major Head/Sub-head Loose Tools & Trade Receivables Cheques in Hand & Current Investments Term Loan from Bank & Other Long-term Liabilities Computer Software & Tangible Fixed Assets \end{matrix}$

You are required to represent the items as per the Companies Act, 2013,

Operating Cycle and the period when payment is made is given below. How will you classify the liability ?

$\begin{matrix} Particulars & (i) & (ii) & (iii) & (iv) & (v) & (vi) & (vii) Operating Cycle (Months) & 9 & 10 & 10 & 15 & 15 & 15 & 16 Expected period of payment of Trade & 10 & 12 & 14 & 12 & 13 & 18 & 15 Payables(Months) \end{matrix}$

Trade payables to be settled beyond 12 months from the date of balance sheet or beyond the operating cycle are classified under _____

How many periods of duration 55 minutes are scheduled and what type of scheduling does the given timetable come under?

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Case	Operating Cycle Period (Months)	Expected Payment Period (Months
1	10	11
2	10	12
3	10	13
4	14	13
5	15	16

Case	As Current Liabilities or Non- Current Liabilities	Reason
1.	Current Liabilities	Expected payment is more than operating cycle but payable within 12 months
2.	Current Liabilities	Expected payment is more than operating cycle but payable within 12 months
3.	Non- Current Liabilities	Expected payment is more than operating cycle and payable after 12 months
4.	Current Liabilities	Expected payment is less than operating cycle
5.	Non- Current Liabilities	Expected payment is more than operating cycle and payable after 12 months