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State Giving Reason Whether Trade Payables Are Classified as Current Liabilities Or Non-current Liabilities - Accountancy

Ledger

State giving reason whether Trade Payables are classified as Current Liabilities or Non-current Liabilities in the Calance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:

Case

Operating Cycle Period (Months) 

Expected Payment Period (Months

10

11

2

10

12

3 10 13
4 14 13
5

15

16

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Solution

Case

As Current Liabilities or Non- Current Liabilities

Reason

1.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

2.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

3.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

4.

Current Liabilities

Expected payment is less than operating cycle

5.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

Concept: Concept of Financial Statements
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 1 Financial Statements of a Company
Exercise | Q 8 | Page 65
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