Question

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule-III, Part-I of the Companies Act, 2013:

(i) Stores and Spare parts
(ii) Livestock
(iii) Public Deposits

Hint:

Stores and spare parts are inventories under current assets. Livestock is a fixed tangible asset. Public deposits are long term borrowings.

Answer 1

Step 1: Recall the rule:
Schedule III, Part I of the Companies Act, 2013 gives the Balance Sheet of a company in a fixed format. Every item sits under a major head (such as Non-Current Assets or Current Liabilities) and then under a sub-head. The 12 months from the Balance Sheet date decide whether an item is current or non-current.

Step 2: Classify Stores and spare parts.
Stores and spare parts are consumable items kept to run the plant. They are used up in the operating cycle, so they are current. Schedule III lists them as a part of inventories.
Major head: Current Assets. Sub-head: Inventories.

Step 3: Classify Livestock.
Livestock (cattle and animals kept for use in a business such as a dairy) is held for long-term use and not for sale in the ordinary course. So it is a fixed tangible asset and a non-current one.
Major head: Non-Current Assets. Sub-head: Property, Plant and Equipment and Intangible Assets.

Step 4: Classify Public deposits.
Public deposits are sums accepted by the company from the public for a fixed term, beyond one year. They are a loan, so they are shown as borrowings. Because they are repayable after 12 months, they are non-current.
Major head: Non-Current Liabilities. Sub-head: Long Term Borrowings.

Step 5: Summary table:

Item	Major head	Sub-head
Stores and spare parts	Current Assets	Inventories
Livestock	Non-Current Assets	Property, Plant and Equipment and Intangible Assets
Public deposits	Non-Current Liabilities	Long Term Borrowings

Final Answer:
Stores and spare parts: Current Assets - Inventories; Livestock: Non-Current Assets - Property, Plant and Equipment and Intangible Assets; Public deposits: Non-Current Liabilities - Long Term Borrowings.