Question

Show 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:
(a) Stock-in-trade
(b) Motor Vehicles
(c) Provision for tax

Hint:

Remember: Inventories go under Current Assets, fixed assets like vehicles go under PPE, and unpaid taxes are classified under Short-term Provisions.

Answer 1

Classification of Items in Balance Sheet

(a) Stock-in-trade

Major Head: Current Assets
Sub-head: Inventories

Stock-in-trade refers to goods bought for resale (not raw material or finished goods). It is part of the inventory classification.

(b) Motor Vehicles

Major Head: Non-current Assets
Sub-head: Property, Plant and Equipment (PPE)

Motor vehicles used in operations are classified under fixed assets. Depreciation is charged on them.

(c) Provision for Tax

Major Head: Current Liabilities
Sub-head: Short-term Provisions

Provisions for tax are payable within one year and hence treated as short-term obligations.