Match List I with List II:\begin{tabular}{|l|l|}\hline\textbf{LIST I} & \textbf{LIST II} \ \hlineA. Capital Reserve & I. Current Assets \ \hlineB. Inventories & II. Non-Current Liabilities \ \hlineC. Debentures & III. Current Liabilities \ \hlineD. Provision for tax & IV. Reserve and Surplus \ \hline\end{tabular}Choose the correct answer from the options given below:
- AA-IV, B-I, C-II, D-III
- BA-IV, B-II, C-III, D-I
- CA-III, B-I, C-IV, D-II
- DA-III, B-IV, C-II, D-I
Solution & Step-by-step Explanation
According to Schedule III of the Companies Act, 2013, the financial statement items are classified as follows:\begin{itemize}\item \textbf{Capital Reserve} is part of Shareholders' Funds under the sub-head \textbf{Reserves and Surplus} (A-IV).\item \textbf{Inventories} are assets intended for sale or consumption within the normal operating cycle, classified under \textbf{Current Assets} (B-I).\item \textbf{ Debentures} represent long-term borrowings of the company, categorized under \textbf{Non-Current Liabilities} (C-II).\item \textbf{Provision for tax} is an obligation expected to be settled within twelve months, placed under \textbf{Current Liabilities} (specifically Short-term Provisions) (D-III).\end{itemize}This maps to the combination: A-IV, B-I, C-II, D-III.