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) Calls in advance
(b) Public deposits
(c) Intangible assets under development

Hint:

Schedule III of the Companies Act, 2013 mandates that items must be classified based on their nature and timing of realization or settlement. Always check if it is current or non-current.

Answer 1

(a) Calls in Advance

Calls in advance are shown under the head “Other Current Liabilities” as a separate line item.

They do not form part of share capital since they are not due yet but received in advance.

(b) Public Deposits

Public deposits are classified under the head “Long-Term Borrowings” if repayable after 12 months, or under “Other Current Liabilities” if repayable within 12 months.

This classification depends on the terms of repayment.

(c) Intangible Assets Under Development

These are shown under the head “Non-Current Assets” under the sub-head “Intangible Assets under Development”.

It is disclosed separately under intangible assets as per Schedule III.