Skip to content

CA Intermediate · Advanced Accounting · Financial Statements of Companies

Kaveri Pharma Ltd. has the following balances at 31 March: trade payables ₹6,00,000; outstanding expenses ₹80,000; current maturities of long-term borrowings ₹2,50,000; provision for tax ₹1,20,000; unpaid dividend ₹30,000; advance received from customers ₹90,000; and provision for employee benefits (due within 12 months) ₹70,000. What is the total of 'Current Liabilities' as per Schedule III?

Total current liabilities are ₹12,40,000. Every item given falls under current liabilities in Schedule III: trade payables, other current liabilities such as outstanding expenses, current maturities, unpaid dividend and customer advances, and short-term provisions for tax and employee benefits. Adding them gives ₹12,40,000.

  1. A₹12,40,000Correct
  2. B₹12,10,000
  3. C₹11,50,000
  4. D₹13,40,000

Explanation

All listed items are current: trade payables, outstanding expenses (other current liabilities), current maturities, unpaid dividend, advances from customers, provision for tax and short-term provision for employee benefits. Sum: 6,00,000 + 80,000 + 2,50,000 + 1,20,000 + 30,000 + 90,000 + 70,000 = 12,40,000. Excluding unpaid dividend would give 12,10,000, which is wrong because it is an other current liability.

Did you get it right without looking?

One question tells you little. A timed set on Financial Statements of Companies shows your real accuracy, how long you take and where you lose marks.

Practise Financial Statements of CompaniesFree diagnostic mock

More Financial Statements of Companies questions