Question

How are the following items shown while preparing Balance Sheet of a company:

1. Surplus, i.e., Balance in Statement of Profit and Loss (Dr.);
2. Interest accrued and due on Debentures;
3. Computer Software under development;
4. Interest accrued on Investment
5. Arrears of dividends on Cumulative Preference Shares?

Answer 1

S. No.	ITEMS	MAJOR HEAD	SUB-HEAD
(i)	Surplus, i.e, Balance in Statement of Profit and Loss (Dr.)	Shareholder’s Funds	Reserves and Surplus (as a negative figure)
(ii)	Interest accrued and due on debentures	Current Liabilities	Other Current Liabilities
(iii)	Computer Software under development	Non-current Assets	Fixed Assets (Intangible Assets under Development)
(iv)	Interest accrued on Investments	Current Assets	Other Current Assets
(v)	As Contingent Liability and is disclosed in the Notes to Accounts.