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Question
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 |
||
| 1 |
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 |
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