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CA Intermediate · Advanced Accounting · Financial Statements of Companies

Narmada Pharma Ltd. had the following balances at the year end: Trade payables Rs 7,00,000; Outstanding salaries Rs 1,20,000; Current maturities of long-term borrowings Rs 4,00,000; Provision for tax Rs 2,30,000; Unclaimed dividend Rs 50,000; Long-term loan from bank (non-current portion) Rs 15,00,000. What amount will be shown under 'Other current liabilities' as per Schedule III?

Other current liabilities total Rs 5,70,000. This comprises current maturities of long-term borrowings Rs 4,00,000, outstanding salaries Rs 1,20,000 and unclaimed dividend Rs 50,000. Trade payables and short-term provisions such as provision for tax are shown under their own separate headings.

  1. ARs 5,70,000Correct
  2. BRs 5,20,000
  3. CRs 7,50,000
  4. DRs 8,00,000

Explanation

Other current liabilities include current maturities of long-term debt (4,00,000), outstanding salaries (1,20,000) and unclaimed dividend (50,000) = Rs 5,70,000. Trade payables are a separate line, and provision for tax is a short-term provision. Rs 5,20,000 wrongly omits unclaimed dividend, treating it as non-current.

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