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

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Solution

Case

As Current Assets or Non- Current Assets

Reason

1.

Current Assets

Expected receipt is more than operating cycle but receivable within 12 months.

2.

Current Assets

Expected receipt is more than operating cycle but receivable within 12 months.

3.

Non- Current Assets

Expected receipt is more than operating cycle and receivable after 12 months.

4.

Current Assets

Expected receipt is less than operating cycle.

5.

Non- Current Assets

Expected receipt is more than operating cycle and receivable after 12 months.

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Similar questions

Q. 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

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 expected period of realisation of trade receivables is given below. How will you classify the asset ?

$\begin{matrix} Particulars & (i) & (ii) & (iii) & (iv) & (v) & (vi) & (vii) Operating Cycle (Months) & 9 & 17 & 10 & 10 & 14 & 24 & 10 Expected realisation period of Trade & 8 & 15 & 11 & 15 & 16 & 20 & 12 Receivables (Months) \end{matrix}$

If realisation period of Asset 'A' is 18 months and operating cycle is 13 months. Asset 'A' is :

The 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

$\begin{matrix} Items & Major Head/Sub-head Loose Tools & Trade Receivables Cheques in Hand & Currnt Investments \end{matrix}$

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

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

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

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