Skip to content

CA Intermediate · Advanced Accounting · Financial Statements of Companies

Mehta Industries Ltd. has trade payables as follows on 31 March 2026: Dues to micro and small enterprises Rs 4,00,000; dues to other creditors Rs 16,00,000. It also has an advance received from customers of Rs 2,50,000 and outstanding salaries of Rs 1,50,000. Under Schedule III, what amount will be shown as 'Trade payables' in the balance sheet?

Trade payables are Rs 20,00,000, being the dues to micro and small enterprises plus dues to other creditors. Customer advances and outstanding salaries are not trade payables; they are classified as other current liabilities under Schedule III.

  1. ARs 20,00,000Correct
  2. BRs 24,00,000
  3. CRs 16,00,000
  4. DRs 22,50,000

Explanation

Trade payables comprise amounts due for goods and services purchased in the ordinary course, including those to micro and small enterprises, which are shown separately within the note: 4,00,000 + 16,00,000 = Rs 20,00,000. Advances from customers and outstanding salaries are other current liabilities. Rs 24,00,000 wrongly adds both of them.

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