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CA Intermediate · Advanced Accounting · Financial Statements of Companies

Kaveri Exports Ltd. has the following balances at the year end: Trade payables Rs 6,40,000; Outstanding salaries Rs 85,000; Current maturities of long-term borrowings Rs 4,00,000; Provision for tax Rs 2,10,000; Unclaimed dividend Rs 45,000; Advances received from customers Rs 1,20,000. As per Schedule III, what is the total of 'Other current liabilities' (excluding trade payables and short-term provisions, and treating salary payable and customer advances as other current liabilities)?

Other current liabilities total Rs 6,50,000, made up of current maturities of long-term borrowings, unclaimed dividend, outstanding salaries and customer advances. Trade payables are shown separately, and the provision for tax belongs under short-term provisions, so neither is included.

  1. ARs 6,50,000Correct
  2. BRs 5,50,000
  3. CRs 12,00,000
  4. DRs 8,60,000

Explanation

Other current liabilities include current maturities of long-term debt (4,00,000), unclaimed dividend (45,000), outstanding salaries (85,000) and advances from customers (1,20,000). Total = 4,00,000 + 45,000 + 85,000 + 1,20,000 = Rs 6,50,000. Provision for tax is a short-term provision, and trade payables are shown separately. Including the tax provision would give Rs 8,60,000, which is wrong.

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