Arrange the following items in the correct sequence as they appear under the 'Equity and Liabilities' section in the Balance Sheet of a company:(A) Non-current Liabilities(B) Shareholder's Funds(C) Current Liabilities(D) Contingent liabilitiesChoose the correct answer from the options given below:
- A(D), (B), (C), (A)
- B(B), (A), (C), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
According to Part I of Schedule III of the Companies Act, 2013, the 'Equity and Liabilities' section of a company's Balance Sheet follows this order:(B) Shareholders' FundsShare Application money pending allotment(A) Non-current Liabilities(C) Current LiabilitiesAdditionally, (D) Contingent Liabilities are not added to the balance sheet totals; instead, they are disclosed at the very end as a note to accounts. Thus, the correct sequence is (B), (A), (C), (D).