Arrange the given item heads in the correct logical sequence from top to bottom as they appear within the Expenses section of a Statement of Profit and Loss according to Schedule III of the Companies Act, 2013:(A) Finance costs(B) Purchase of Stock-in-Trade(C) Cost of materials consumed(D) Employee benefits expenseChoose the correct answer from the options given below:
- A(C), (B), (A), (D)
- B(B), (A), (C), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The structural presentation format for Expenses inside Part II of Schedule III (Statement of Profit and Loss) runs in the following sequence:Cost of materials consumed (C)Purchases of Stock-in-Trade (B)Changes in inventories of finished goods, work-in-progress and Stock-in-TradeEmployee benefits expense (D)Finance costs (A)Depreciation and amortization expenseOther expensesHence, the ordered sequence for the given items is (C), (B), (D), (A).