Arrange the following line items in the sequence in which they appear in the Balance Sheet as prescribed in Part I of Schedule III of the Companies Act, 2013:(A) Non-current liabilities(B) Current liabilities(C) Current Assets(D) Shareholders' fundsChoose the correct answer from the options given below:
- A(D), (A), (B), (C)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
Part I of Schedule III of the Companies Act, 2013 arranges the Balance Sheet format vertically.First, the Equity and Liabilities section is presented in the following sequence:Shareholders' funds (D)Share application money pending allotmentNon-current liabilities (A)Current liabilities (B)Next, the Assets section is presented, under which Current Assets (C) appear at the bottom below Non-Current Assets.Therefore, the relative top-to-bottom layout sequence of these elements is (D), (A), (B), (C).