Question

How will you disclose the following items in the Balance Sheet of a company;

1. Current assets, inventory
2. Contigent liabilities in notes to accounts
3. Shareholders Funds, Reserve and Surplus
4. Fixed Assets, Intangible Assets
5. Proposed Dividend for the current year
6. Non Current Liabilities
7. Arrears of Dividend on Commulative Preference Shares.

Answer 1

The following items will be disclosed in the balance sheet as -

1. Inventories – Sub-head,
   Current Assets – Main Head.
2. Contingent Liability – Main Head in Notes to Accounts.
3. Shareholders Fund – Main Head,
   Reserves and Surplus – Sub head.
4. Fixed Assets – Sub-head,
   Intangible Assets – A part of Sub-head.
5. Proposed Dividend for the current year – Under the head Current Liabilities and Sub-head Short term Provision.
6. Non-Current Liabilities – Main Head.
7. Arrears of Dividend on Cumulative Preference Shares – Under the head Current Liabilities and Sub-head Other Current Liabilities.